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Trading CFDs involves significant risks.
The FxPro News forex economic calendar is a handy tool for forecasting volatility on currency rates.
The logic of trading on news is simple: if the indicator value in the calendar turns out to be better than the forecast, investors will begin to open more trades to buy the national currency. If the data is worse than the expectations, they apparently sell. More…
The greater the difference between the forecast and the actual value, the more the market will react. If the value of the indicator coincides with the forecast, the market reaction is likely to be insignificant.
For example, if the US unemployment rate was previously expected to be 5%, but then unexpectedly rose to 5.2%, the dollar course would likely fall, as a result of such negative financial news.
However, remember that trading on news contains a significant risk of loss. In some cases, the foreign exchange market does not react to the news in the way that most traders expect.
For example, the unemployment rate increased but at the same time the number of new jobs in the US private sector (NFP) also increased. In order to best understand which indicator is most important for traders, it is important to examine the news feed as well as understand the Fed’s current monetary policy.
Also, do not forget the saying: “buy the rumours, sell the facts.” If the economic forecasts are positive, the currency is likely to be strengthened a few days before the news is published.
If expectations are negative, the currency may begin to lose value some days before the release of news. In the FxPro News economic calendar, you can filer events by importance and by currency affected and set dates.
Note: sometimes, along with the publication of evidence, the previous value is revised. The market can also react to this news.
Finally, do not forget to use technical analysis. If the currency price is in an uptrend and good economic news appears on the calendar, there is a much higher probability that a positive trend will continue.
To display the Calendar correctly, please turn the phone into horizontal mode.