So in the last video, we were concentrating on which specific news items to focus in on. Now we're going to concentrate on the currencies to focus in on because there are certain currencies that are more optimum to trade than others for news based trading. So the currencies I want you guys to focus in on are those from the major developed nations. So as this table symbolizes, we have the following the United States dollar, the Euro, the pound, the Japanese yen, the Aussie dollar, the kiwi dollar, the Canadian dollar, and the Swiss franc. Our job going forward and in future topics is to be able to identify from this list which are strong and which are weak so we can pair them together for the highest probability opportunities. But there are also other advantages.

The reason why I want you to concentrate here on these currencies is that They are the most commonly traded by the big institutions, meaning that they are very, very liquid and have low transaction or trading costs because they're getting traded all the time. Generally speaking, your broker will not charge you as much to trade them as with less frequently traded currency pairs. And because we know that the big institutions are trading them, remember earlier, we talked about how we want to replicate the big institutions, if they concentrate their efforts on these currency pairs. That's exactly what we want to do as well. I mean, so terms of being able to spot which news announcement affects which currency pairs it's very, very easy, and you've probably seen that in the Forex factory video. But just to illustrate very quickly here, when you've got your calendar in front of you, you will notice there is a column just here which gives you the breakdown of the currency that a news announcement is going To effect so as we see here, the retail sales news announcement will affect the Aussie dollar.

The unemployment claims this news announcement here will affect the United States dollar. And again, why is that important? Well, we can then focus ourselves in on specific high impact news events, we can then find out which currency pair it's likely to impact. And then when the news comes out, we know whether it's better or worse as to whether it's going to strengthen or weaken the local currency. So for example, let's have a look at the retail sales. And don't worry if it's slowly sinking in, we're going to go through this approach many many times throughout the next few topics, but just to introduce it, so we had retail sales come out.

And the expected figure was naught point four. So the analysts were thinking okay, it's, it's gonna it's going to improve Previous, which was nought point two, so naught point four would have been pretty good. So the market came into that news event thinking actually, the news, the retail sales from Australia is expected to come in at naught point four which is, which is a good positive number, when it came in at naught point naught that was worse than expected. So, I don't know what actually happened exactly off the back of that. But I would have expected that the Aussie would have weakened significantly. Why is because the data was worse than what the market expected.

So this generally weakens the currency pair that it affects, which we now know, is the Australian dollar because the calendar told us that. So this was just a quick video, just to summarize the currency pairs that I want you concentrating on in terms of building a trade plan and deciding which currency pairs we're going to trade. We're going to do that in future topics for now. You now know what news announcements Want to trade and now the currency pairs that you want to focus in on. Over the next few topics, we're going to concentrate on building the all important plan, which helps us identify which currency pairs are those pairs that are going to provide us with the high highest probability trading opportunities.