The Forex market can respond to news at any time from anywhere. The Forex market is a true 24 hour global market. Each session begins in Sydney then moves over to Hong Kong. As the Hong Kong markets are winding down, European markets are coming on. As the day progresses the American markets join the fray while the European markets are coming to an end. As the American markets come to a close, it is time to start the trading back in Sydney.
There are a lot of factors that go into valuing a currency. A country's economic condition is arguably the largest factor determining a country's currency value. Countries experiencing economic expansion will see the value of their currency rise. Therefore, economic news can influence the activity in the Forex market. Economic news is easily found on cable financial stations and various financial websites. Yahoo/Finance provides a weekly calendar for the most important U.S. economic reports due that week. Knowing when key reports are due--GDP, employment report, to name a few--will help traders anticipate market moving events. A country's interest rate environment will also play a role in the value of its currency. A country with higher rates will see an increase in value of its currency against a country with lower interest rates. Knowing when policy makers are going to convene and announce interest rate decisions is also very important. In the case of the U.S. Federal Reserve, they provide a calendar of policy meetings on their website.
