Trading news events

Before looking at strategies for trading news events, it is important to look at which events are actually worth trading.

As we are trading the news because of its ability to increase volatility in the short term, it makes sense to only trade news that has the best forex market moving potential.

Market-moving potential

While the markets react to most economic news from various countries, the biggest movers and most watched news come from the US as it has the largest economy in the world and the US Dollar is the world’s reserve currency.

Some of the most volatile news reports for the US follow the release of NFP, FOMC, CPI, Trade Balance and Retail Sales data.

It is also important to pay attention to geopolitical news such as war, natural disasters, political unrest, and elections which may not have as big an impact as the other news but may still have a bearing on the way the markets react.