How News Can Impact Forex Trading?

[moonchild]

If you're trader you know how wild news can be in the forex market, there are a lot of gyrations and volatile moves when the the news are released, in my former posts I've outlined different ways you can actually protect yourself from such gyrations, I mentioned that the best way to do it if you're not a fundamental trader is to stay away from the market.

Always check to see if there is any incoming news and stay away from the market completely, you can also trade the news by learning more about fundamentals and applying it to your trades, it can be really profitable because the market can move a number of pips in a very short period of time during volatile news.

 

[FinTrader]

News can have different effects on the price of a trading instrument: the price can sharply turn around and make a strong impulse, the price can sharply continue to move in the same direction, and can also rise or fall sharply and then return to the same place where it was before news release. That is, there is some uncertainty in the behavior of prices during the period of news publication. Therefore, I do not trade at this time and wait until the market becomes calmer and only then do I wait for signals for trades from my trading strategy.

 

[Ivo Zetticci]

News can significantly impact forex trading by influencing market sentiment and volatility. Economic indicators, geopolitical events, and central bank announcements can cause sharp movements in currency prices as traders react to new information and adjust their positions accordingly.