Forex (FX) Basics

Currency Pairs

USD/ SGD

USD = base currency

SGD = quote currency

i.e Buy USD, sell SGD

Minimum Price Increment: 0.00001 ( 0.1 pip)

Settlement: T+2

e.g USD.SGD 1.3703 means 1 USD is worth 1.3703 SGD
So the ideal rate is 1:1   ie. Using 1 SGD to exchange for 1 USD

Trading Hours

Forex trades 24 hours a day, 5 days a week

Most favorable trading time: 8 AM to 12 PM EST when both NY and LDN exchanges are open  (8 PM to 12 AM SGT) 

What News are Important for a Currency Pair

Trading on market rumour vs trading on market news. Usually the dollar would have been traded on market rumours way before the statistics are released by the government. Reason being, the dollar is the world's reserve currency. It is also frequently paired with other major currencies.  

EUR/ USD
USD/ JPY
GBP/ USD 
USD/ CHF


(i) US Employment Data, Non- Farm Payroll (NFP) Reports

- Released by US Bureau of Labour Statistics 
- Reports due monthly on 1st Friday of the month (for release schedule click here)
* Recommended to subscribe to news alert or download financial management apps for easy access 


(ii) Federal Open Market Committee (FOMC) Meeting - Federal Funds Rate

- Released by the FOMC which sets the Monetary Policy for the US
- Reports due every 1.5 months (for release schedule click here)


(iii) Gross Domestic Product (GDP )

 - Released by US Bureau of Economic Analysis
- Reports due quarterly around 3rd week of the month (for release schedule click here)
 - reflects general sentiment of the economy 
- coincident indicator

(iv) Geopolitical News

- e.g Natural disasters, General Elections, Political violence, Wars

Summary: If the numbers released are better than the forecast, the currency that you are trading will appreciate.