News traders are told to look at the most commonly traded currencies on the forex live market. It is important that you know what these currencies are so that you can choose correctly. It is also important that you know a bit about each currency so you can better understand how you should be trading it.
Trading Forex Live with the US Dollar
Possibly the most commonly traded currency on the forex market is the US dollar. This could be due to the fact that the US dollar is the reserve currency of the world. The US dollar is also the currency of the world’s largest economy. The fundamental information for the US dollar comes from the Federal Reserve Bank which is the central bank for the United States of America.
A lot of traders use fundamental analysis when they trade the US dollar. Of course, you can also use technical analysis when trading this currency. Some of the main news releases you should look for with the US dollar are the interest rates, the GDP, employment figures and the manufacturing figures of the country. These are all the main fundamental factors that affect the price movements of the currency.
It is easy for new traders to trade the US dollar because of the accessibility and abundance of information relating to the currency. All forex brokers will also offer currency pairs that have this currency on them.
Trading Forex Live with the Euro
While the Euro is one of the world’s newest currencies it is fast becoming one of the most important. The Euro is used across the 17 member countries of the Euro Zone. This currency is one of the more volatile ones and can fluctuate by 40 pips in a single day. Many new traders look at trading the Euro against the US dollar because they are heavy hitters and they are both largely traded in the London and New York market session overlap.
When you are looking at trading the Euro you have to consider the technical and fundamental implications. Technically the currency is actually very easy to trade because of the amount of information you can get. There are also certain times when the Euro is more liquid and volatile.
It is when you are looking at the fundamentals of trading the Euro that you may have a problem. As the Euro is the currency used by a number of countries you have to consider how each country affects the currency. When you look at the US dollar you only have to consider what is happening in the USA. However, with the Euro you have to consider what is happening in all 17 member countries. This can make fundamental analysis time consuming and difficult for new traders. New traders should look at trading this currency technically instead of fundamentally.
When you look at the currency pairs that you should be trading with you have to consider how easily you can determine the forex live factors. You need to consider the technical and fundamental analysis that should be completed and how easy this is. If you are not a fan of fundamental analysis then you should look for currencies that allow you to trade technically.