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One of the key aspects for understanding the currency pair fluctuations on Forex is working with news. Know-how to work with Forex news is equally crucial for both newbies and experienced traders willing to upgrade their skills.

To elaborate one's own daily trading strategy, a trader needs to analyze the calendar of news for an upcoming trading period. Successful trade relying on Forex news requires:

- Knowing an approximate time when major news are most expected to be published;

- Understanding the principle of market functioning at news releases and realizing the way profit can be made on Forex;

- Discerning the interrelation between news and technical analysis.

You should also be aware of the fact that some data affect the market more than other. It is not difficult to understand. Trading strategies have been developed for many years which is suggestive of a series of economic factors influencing the way currency pairs fluctuate. Some of these factors are listed below:

•  The interest rates set by banks;

•  Inflation rate;

•  GDP and industrial output;

•  Business indices;

•  Announcements of financial officials in a certain country who are the most influential ones being top-officials of the USA, Great Britain, EU countries, Japan, Switzerland and Canada.

Most Forex data are quite expected: as a rule, the data have always been forecasted. The currency market anticipates a news and all its parties do their best to be prepared. Before a news is released the experts publish their forecasts regarding possible currency rates movements.

The market may respond the news released in the following ways:

•  If a news has met the expectations, the rate of a certain currency remains basically unchanged.

•  If Forex analysts provide exact forecast, with no regard to consequences of the current market trend, the currency rates will not be changed as well, although their movement may accelerate.

•  In case of wrong forecasts, the currency rate will take the opposite direction.

When analyzing the way fundamental data influence the currency rates it is necessary to take into account the trend direction.

If the published news contradicts the trend it implies short-term news influence: it will not be influential but for several hours.

If the news coincides with the dominant trend, then the trend will gain speed.

One ought to bear in mind that fundamental analysis basics are of most use when applied with technical analysis data.

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