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The Currency markets is quickly becoming just about the most popular investment vehicles because of its huge volume and liquidity. However, additionally it is one of the most volatile investment vehicles due to its sudden price fluctuations and the truth that a lot of the market is heavily leveraged. For these reasons, fortunes could be made or lost in short order making the need for a trusted investment system very urgent indeed. While many Forex investors trust charts that track price movements along with other forms of technical analysis to help determine entry and exit points, there are a few investors who like enter and exit positions based on news releases.In theory, the smaller Forex retail traders must have a slight advantage when it comes to capitalizing on how the news affects the markets. With immediate Access to the internet and a never ending blast of brokers ready to execute trades at any hour of your day, small investors should be able to buy or sell a position quicker than some large conglomerate, mutual fund, or hedge fund. The marketplace can literally adjust in minutes to relevant news releases so investors who move quickest can capitalize--in theory.Of course, it does boil down to knowing what news is relevant and then to determine how which will affect the currency exchange rates. Even news from countries apart from those in your currency pair can play a substantial role in a nutshell term price corrections. For all those desperate to trade in the Forex based on news releases, there are 8 major currencies currently playing significant roles available in the market, including:1. U.S. Dollar(USD)2. Euro(EUR)3. festival (GBP)4. Japanese Yen(JPY)5. Canadian Dollar (CAN)6. Australian Dollar(AUD)7. Swiss Franc(CHF)8. New Zealand Dollar(NZD)Because the USD is really a backer in nearly 90% of most transactions on the Forex, the release of key economic indicators from the U.S. are always important to the currency exchange rates. These data are released at regular intervals which supposedly levels the playing field between the large and small investors. In theory, they should be able to capitalize upon short term price fluctuations due to the release of these key indicators:1. Interest Rate Decisions by Central Banks/Financial Policy Makers2. GDP rates3. Balance of trade4. Unemployment data5. Inflation6. Retail sales/manufacturing output7. Business Confidence as dependant on Outlook Surveys8. Consumer Confidence Surveys9. Manufacturing Confidence as dependant on Outlook surveysTrading on the Forex based on news releases means capitalizing upon short-term fluctuations in the market as it corrects itself. Because these corrections can occur in a matter of minutes, it is vital for this kind of investor to capitalize quickly or risk jumping following the market has already adjusted for the new information. While that is theoretically possible, it is extremely possible that the big investors had usage of the information ahead of its release. If these investors have already shifted their investments accordingly, then your market could have already corrected for the news before it was released--at least partially. If this is the case, then your small investor will jump in too late and likely face a loss.Indeed, trading upon news releases is very dangerous since it also encourages over trading--a factor known to result in losses--especially on the Forex. This is exactly why most Forex investors rely upon technical analysis and their trusty charts when coming up with decisions about entry and exit points available!