Forex Trading News Tips

by Tyler Ziggler

I wanted to talk to you about a few forex trading news tips that I've picked up in my time that have helped me stay ahead of the market and profit. This market is very large with trillions of dollars each day being traded. There is a lot to learn and there is even more information to keep informed on. News is a really great resource, even though it isn't even filtered for the average forex trader. You've probably never seen any forex information on the news, but it wasn't until I looked at things a little deeper, that I figured it out. The economic news will end up effecting the market, so obviously staying up on the economic news will keep you informed. I'm going to show you exactly what you need to know.

The world's currency is all fiat and this creates challenges in itself. A fiat currency is one that isn't backed by anything. If you hold up some paper money, the real value of that is of the cost of the paper and the ink on it. Money used to be backed by precious metal, most noticeably gold. Money in an economy needs to follow supply and demand, just like everything else. When we used gold, it was much easier to follow supply and demand. Fiat is hard. The central banks in countries are forced to figure out demand and give the proper supply. This is difficult and they almost always make a mistake which effects the price of the currency.

It is the economic news that comes out that is going to help you. The good thing about this type of news is that it is never breaking. All the reports are released at scheduled times. Watch for unemployment rates and GDP growth. If it shows good news, than it is good for the currency. If it is bad news, than it is bad for currency.

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