What is Forex News?
Forex News refers to economic and political events that directly impact currency prices in the global market. These include interest rate decisions, inflation data, employment reports, GDP growth, and geopolitical developments.
For example, when the U.S. Federal Reserve changes interest rates, the U.S. dollar often experiences sharp moves. Similarly, news from the European Central Bank or employment reports like the U.S. Non-Farm Payroll (NFP) can cause huge volatility.
Why is Forex News Important?
- Market Movers: News is one of the strongest factors that move the forex market. Prices can rise or fall sharply within seconds of a news release.
- Opportunities for Traders: Advanced traders use news to profit from quick moves.
- Risk for Beginners: While news offers opportunities, it also brings unpredictable volatility that can wipe out accounts if traders aren’t careful.
Why Beginners Should Avoid Trading During News Releases
- Unstable Prices: Spreads widen and slippage occurs, making it difficult to enter or exit trades at expected prices.
- High Volatility: Candles may spike up and down within seconds, creating a high chance of loss.
- Psychological Pressure: Beginners often panic when the market moves against them rapidly.
That’s why many experienced mentors advise new traders to avoid trading 15–30 minutes before and after major economic news.
How to Follow Forex News
- Use trusted economic calendars like Investing.com or Forex Factory.
- Pay attention to high-impact news marked in red (like interest rates or employment reports).
- Learn to combine technical analysis with news awareness for better decision-making.
Conclusion
Forex News is a powerful driver of the market. For beginners, it’s not about trading the news, but understanding it and learning when to step aside. By respecting news events, you protect your capital and build the discipline needed for long-term success in forex trading.
