Trading Forex – Major economic events and fundamental
developments are monitored by currency traders as it reflects the strength of a
country’s economy, and typically spurs volatility in the exchange rate as
investors weigh the outlook for the economy. Trading the news is often
difficult as it producers sharp movements in the exchange rate, but at the same
time, can generate a profitable opportunity. Trading event risks does not
require investors to forecast the results of the event. However, taking a
position based on market expectations involves a high level of risk as the
release may exceed or fall short of forecasts.
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