How To Trade News?

To trade Forex through fundamental analysis based on News, you have to check how economies all over the world are doing based on their macroeconomics data (such as GDP, employment, consumption data, inflation…), watching closely the countries of the currencies you are trading the most. You must remember that certain news affect a large basket of Currencies while a few have effect on relatively lower number of currencies owing to the localized impact of the News. It is always advisable to avoid bad surprises by regularly check on when high volatility data are expected to be released to enable you to manage your trades more efficiently. Certain Events which have major impact after their release are listed below:

EIA Crude Oil Stocks Change

The EIA Crude Oil stockpiles report is a weekly measure of the change in the number of barrels in stock of crude oil and its derivatives, and it’s released by the Energy Information Administration(EIA) . This report tends to generate large price volatility, as oil prices impact on worldwide economies, affecting the most, commodity related currencies such as the Canadian dollar.  The level of inventories influences the price of petroleum products, which can have an impact on inflation.  Interestingly, it has a limited impact among currencies, this report tends to affect the price of oil itself, and, therefore, had a more notorious impact on WTI crude futures. If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices. The same can be said if a decline in inventories is less than expected.  If the increase in crude is less than expected, it implies greater demand and is bullish for crude prices. The same can be said if a decline in inventories is more than expected. Currencies/Commodities Impacted By This News: CAD, Oil, WTI crude futures

Nonfarm Payrolls– USA

NonFarm Payrolls report measures the number of jobs added or lost in the US economy over the last month, in all non-agricultural business like goods, construction and manufacturing companies in the US . It is released usually on the first Friday of each month, at 8:30 EST. It is published by the US Department of Labor. Note: The figure released is the change in nonfarm payrolls (NFP), compared to the previous month, and is usually between +10,000 and +250,000 during non-recessional times.  The monthly changes in payrolls can be extremely volatile (This is Major News Event & Must Be Paid Proper Attention!) , due to its high relation with economic policy decisions made by the Central Bank. The number is also subject to strong reviews in the upcoming months, and those reviews also tend to trigger volatility in the forex board. In short, a high reading is seen (caution: watch out for other major events, if any, in parallel) as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish), although previous months reviews ​and the unemployment rate are as relevant as the headline figure, and therefore market’s reaction depends on how the market assets them all. While the overall number of jobs added or lost in the economy is obviously an important current indicator of what the economic situation is, the report also includes several other pieces of data that can or have the power to move the financial markets:

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