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3. How Does News Affect Forex?

Important economic or political news can cause a currency's price to move quickly.

For example, news about:

Interest rates

Inflation

Employment

GDP

Central-bank decisions

can make traders buy or sell a currency.

Simply: Good or bad economic news can cause strong buying or selling, which can move the currency price.

2. What is Market Volatility?

Volatility means how quickly and how much the price of a currency moves.

For example:

If EUR/USD moves only a little during the day → low volatility.

If EUR/USD suddenly moves a large distance within a short time → high volatility.

Simply: Volatility = how much and how quickly the price moves.

5. What Happens When the US Federal Reserve Raises or Cuts Interest Rates?

The Federal Reserve (Fed) is the central bank of the United States.

If the Fed raises interest rates:

→ US investments can become more attractive

→ Demand for USD may increase

→ USD may strengthen 📈

If the Fed cuts interest rates:

→ US investments may become less attractive

→ Demand for USD may decrease

→ USD may weaken 📉

However, the actual market reaction depends heavily on what traders expected beforehand and on the Fed's overall message.

Easy way to remember:

Rate ↑ → USD may ↑

Rate ↓ → USD may ↓

These are tendencies, not guaranteed outcomes.

4. How Do Interest Rates Affect Currencies?

Interest rates can affect how attractive a country's currency is to investors.

If a country's interest rates increase, investors may become more interested in holding that country's currency because they may get better returns.

This can increase demand for the currency.

If interest rates decrease, the currency may become less attractive, which can reduce demand.

Simply: Higher interest rates can strengthen a currency, while lower rates can weaken it—although other factors also matter.

Weldone

Nice explanation

London sessions are one of the trading sessions in the global trading sessions .

It’s operating hours start from 8:00 to 17:00UTC

The market overlaps with London, New York

New York sessions are also trading sessions which are one of the second largest and one of the most volatile markets

This is good

New York starts at 13:00 to 22:00UTC,

it overlaps with London market session

Because it’s from Newyork, the usd had lots of dominance because it was involved in most of the transactions

E.g eur/usd, Gbd/usd, usd/Jpy

Sydney sessions are part of trading sessions that are the opening window of the global 24 hour forex exchange trading day.

They start by 22:00 to 7:00UTC

It kicks off the forex week by opening on Sunday evening

Thank you

Market volatility is a statistical measure of how drastically and rapidly assets price over a given period of time

News act as a primary catalyst for movement in the forex market, driving currency valuations by shifting expectations around economic health, interest rates and geopolitical stability

Nice

Interest rates are the primary engine driving currency values in the forex market because they determine the returns the investor earns

They affect currencies by

Capital flows and yield attraction

Forward looking expectations

The carry trade

The role of real rates

When the US reserve cuts/ raises interest rates, the following happens

- the buying and spending slows down

- US dollar strengthens

- Asset markets face pressure

This happens when they raise the interest rate

- borrowing and spending rate increases

- US dollar weakens

- Risk asset Rally

This happens when Us reserve cuts rates

The smallest standard price move in Forex.

A consolidation = When price goes sideways and "catches its breath" before the next big move.

GM GM