You can get an exceptionally good source of forex news here (see below). The RSS feeds have been hand picked so that they are relevant and most interesting.
Forex news is useful in forex trading for the following reasons:
You can get news about the general state of the economy for your own interest, though this is not to say that it is going to be used for your actual trading, as many systems rely totally on technical analysis, not fundamental analysis.
The exception to point one above, are the major economic announcements that may cause moves in currencies affected by that announcement. Some mechanical systems trade the announcements, so you need to knwo when they are and which ones do tend move the market (and they occur regularly). Also, some systems that purely use technical analysis will require you to exit specific positions before specific major announcement to avoid getting stopped out, and possibly with a with slippage due to gapping as well. It depends on the system you’re trading.
You can find the current correlations between currency pairs. For example, the correlation between the ERUUSD and the USDCHF has been – 0.99 over the 1 year period to September 2005, according to dailyfx. That is, the EUR and CHF are strongly correlated with respect to the USD, and the correlation is a negative value because the USD is the base currency in one and the terms currency in the other.
This may have implications for those who are long one, and short the other currency. This effectively increases your risk because if one of the currency pairs goes against you, it is likely that the other will do the same time. The other way is also true, in that if one goes in your favour, the other is likely to as well! So this may have an impact on the trading rules and money management rules of a system. Some systems do trade both at once, though some trade only one of them at the same time.
The other advantage of these news sites especially made for forex, is not only do they collect all the news items in one place, but they also may alert you to forex market makers that may be in disrepute or are unstable, such as the recent Refco fiasco in 2005.
To recieve an RSS feed from our site, visit this page to get your Forex RSS Feed.
Latest Forex News
Bank of Korea pledges not to touch Won
As the year 2006 winds down, traders and investors are evaluating the performance of their portfolios, especially in the context of competing investments. One currency which stands out in forex markets is the South Korean Won, which has slowly and...
ECB raises interest rates
The woes of the USD continued today, as the European Central Bank (ECB) raised its benchmark interest rate by 25 basis points, to 3.5%. The move was widely anticipated by economists, who predict two additional rate hikes in the spring...
Economist Urges Asia to accept fall of USD
Last week, a well-respected Japanese economist publicly urged Asian nations to take joint action in accepting the fall of the USD against their respective currencies. He encouraged them to fight the temptation to intervene in forex markets, because such could...
By DailyFX - EURUSD - The EURUSD is currently testing the 12/4 low at 1.3281. The dip below 1.3281 argues that a top is... Dec 07 2006 09:18AM GMT
FX Emerging Markets
By DailyFX - South African Rand (7.0878) Strengthening for the third straight session, the South African rand benefited from speculation amassed prior to the two... Dec 07 2006 09:20AM GMT
US Dollar - Yesterdays recovery in the US dollar did not last long as the greenback came under another day of severe selling pressure. ... Dec 01 2006 09:38AM GMT
IMF - Gold sales or no Gold sales?
We were surprised to hear that the employees of the International Monetary Fund have actually suggested sales of gold from their stocks to cover income... Dec 04 2006 09:22AM GMT
Investors pour into currency funds
As the pace of the USD decline accelerates, many investors are searching for ways to profit, especially in ways that offer limited risk. One such vehicle which has proven to be both popular and relatively riskless is the currency fund....
All trading involves a high risk of financial loss, and the information on this site is for general information purposes only and is not financial advice in any form. See your own financial advice before taking any action.
All forms of trading involves risk of financial loss.
Note that this site may have paid advertising or commissions generated for referrals to products and services, and forex brokers made from this site.
See our disclaimer for further information.
Testimonials and trading results of products and services from some people or users of products, does not guarantee or indicate similar results from another user of that product or service.