GBP/USD Intra-Day Fundamentals: UK Manufacturing PMI and 18 pips price movement
2016-02-01 09:30 GMT | [GBP - Manufacturing PMI]
if actual > forecast (or previous one) = good for currency (for GBP in our case)
[GBP - Manufacturing PMI] = Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.
GBPUSD M5: 18 pips price movement by GBP - Manufacturing PMI news event
EUR/USD Intra-Day Fundamentals: ISM Manufacturing PMI and 16 pips price movement
2016-02-01 15:00 GMT | [USD - ISM Manufacturing PMI]
if actual > forecast (or previous one) = good for currency (for USD in our case)
[USD - ISM Manufacturing PMI] = Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.
EURUSD M5: 16 pips price movement by ISM Manufacturing PMI news event
GBP/USD Intra-Day Fundamentals: UK Construction PMI and 44 pips range price movement
2016-02-02 09:30 GMT | [GBP - Construction PMI]
[GBP - Construction PMI] = Level of a diffusion index based on surveyed purchasing managers in the construction industry.
GBPDUSD M5: 44 pips range price movement by UK Construction PMI news event
Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2014.06.06 09:25
3 Steps to Trade Major News Events (based on dailyfx article)
Today, we are going to cover three steps to trade news events.
Step 1 - Have a Strategy
It sounds simple, yet the emotion of the release can easily draw us off
course. We see prices moving quickly in a straight line and are afraid
to miss out or afraid to lose the gains we have been sitting on.
Therefore, we make an emotional decision and act.
Having a strategy doesn’t have to be complicated. Remember, staying out
of the market during news and doing nothing is a strategy.
A strategy for the trader with a floating profit entering the news event
could be as simple as “I am going to close off half my position and
move my stop loss to better than break even.”
For the trader wanting to initiate a new position that is technically
based, they may decide to wait until at least 15 minutes after the
release, then decide if the set-up is still valid.
The active news trader may realize they need a plan of buy and sell rules because they trade based on what ‘feels good.’
Step 2 - Use Conservative Leverage
If you are in the market when the news is released, make sure you are
implementing conservative amounts of leverage. We don’t know where the
prices may go and during releases, prices tend to move fast. Therefore,
de-emphasize the influence of each trade on your account equity by using
low amounts of leverage.
Our Traits of Successful Traders research found that traders who
implement less than ten times effective leverage tend to be more
profitable on average.
3 - Don’t Deviate from the Strategy
If you have taken the time to think about a strategy from step number
one and if you have realized the importance of being conservatively
levered, then you are 90% of the way there! However, this last 10% can
arguably be the most difficult. Whatever your plan is, stick to it!
If I put together a plan to lose 20 pounds of body weight that includes
eating healthier and exercising, but I continue to eat high fat and
sugar foods with limited exercise, then I am only setting myself up for
You don’t have to be stressed or frustrated through fundamental news releases.
NZD/USD Intra-Day Fundamentals: GlobalDairyTrade Price Index and 26 pips price movement
2016-02-02 13:53 GMT | [NZD - GDT Price Index]
if actual > forecast (or previous one) = good for currency (for NZD in our case)
[NZD - GDT Price Index] = Change in the average price of dairy products sold at auction. It's a leading indicator of the nation's trade balance with other countries because rising commodity prices boost export income.
NZDUSD M5: 26 pips price movement by GlobalDairyTrade Price Index news event
USD/JPY Intra-Day Fundamentals: BOJ Gov Kuroda Speaks and 11 pips price movement
2016-02-03 02:30 GMT | [JPY - BOJ Gov Kuroda Speaks]
BOJ Gov Kuroda speaks speak at the Kisaragi-kai meeting, in Tokyo: Introduction of "Quantitative and Qualitative Monetary Easing with a Negative Interest Rate".
USDJPY M5: 11 pips price movement by BOJ Gov Kuroda Speaks news event
GBP/USD Intra-Day Fundamentals: UK Services PMI and 38 pips price movement
2016-02-03 09:30 GMT | [GBP - Services PMI]
[GBP - Services PMI] = Level of a diffusion index based on surveyed purchasing managers in the services industry.
GBPUSD M5: 38 pips price movement by UK Services PMI news event
Sergey Golubev, 2014.01.17 15:52
How Forex News Traders Use ISM Numbers (adapted from dailyfx article)
NZDUSD M5 : 17 pips prrice movement by USD ISM Manufacturing PMI :
What is ISM?
A country’s economy is as strong as its supply chain. The Institute for
Supply Management (ISM) measures the economic activity from both the
manufacturing side as well as the service side. Formed in 1915, ISM is
the first management institute in the world with over 40,000 members in
90 countries. Since it can draw from information gathered from the
surveying its large membership of purchasing managers, the ISM economic
news releases are carefully watched by Forex traders around the world as
a reliable guide to economic activity.
ISM publishes three surveys; manufacturing, construction, and services.
Published on the first business day of the month, the ISM Purchasing
Managers Index (PMI) is compiled from surveys of 400 manufacturing
purchasing managers. These purchasing managers from different sectors
represent five different fields; inventories and employment, speed of
supplier deliveries, production level, and new orders from customers.
XAUUSD M5 : 3345 pips price movement by USD - ISM Non-Manufacturing PMI news event :
In addition, ISM construction PMI is released on the second business day
of the month, followed by services on the third business day. Forex
traders will look to these releases to determine the risks at any given
time in the market.
EURUSD M5 : 37 pips price movement by USD - ISM Non-Manufacturing PMI news event :
Forex Market Impact
The Manufacturing and Non-manufacturing PMI’s are big market movers.
When these reports come out at 10:30 AM ET, currencies can become very
volatile. Since these economic releases are based on the previous
month’s historical data gathered directly from industry professionals,
Forex traders can determine if the US economy is expanding or
Forex traders will compare the previous month’s number with the
forecasted number that economists have published. If the released PMI
number is better than the previous number and higher than the forecasted
number, the US dollar tends to rally. This is where fundamental and
technical analysis comes together to create a trade setup.
AUDUSD M5 : 21 pips price movement by USD - ISM Non-Manufacturing PMI news event :
In the example above, notice how the better than expected PMI number
triggered a US dollar rally against the Euro. As seen in the chart above
of the EURUSD, the ISM Non-Manufacturing was not only above 50 but at
55.4, beat the forecasts calling for a drop from 54.4 to 54.0.
When an economic release beats expectations, like in the example above,
sharp fast moves can result. In this case, EURUSD dropped 22 pips in 15
minutes. Traders often choose the Euro as the “anti-dollar” to take
advantage of capital flows between two of the largest economies.
The Euro zone has a large liquid capital markets which can absorb the
huge waves of capital seeking refuge from the U.S. So a weak US ISM
Non-Manufacturing number usually leads to a dollar sell-off and a rise
in the Euro. Another scenario is when the number released is in line
with forecasts and/or unchanged from the previous month, then the US
dollar may not react at all to the number.
AUDUSD M5 : 32 pips price movement by USD - ISM Manufacturing PMI :
Overall, an ISM PMI number above 50 indicates that the economy is
expanding and is healthy. However, a number below 50 indicates that the
economy is weak and contracting. This number is so important that if the
PMI is below 50 for two consecutive months, an economy is considered in
PMI’s are also compiled for Euro zone countries by the Markit Group
while US regional and national PMIs are compiled by ISM. As you can see,
traders have good reason to pay special attention to the important
releases from the Institute of Supply Management.
EUR/USD Intra-Day Fundamentals: ADP Non-Farm Employment Change and 45 pips price movement
2016-02-01 01:45 GMT | [USD - ADP Non-Farm Employment Change]
[USD - ADP Non-Farm Employment Change] = Estimated change in the number of employed people during the previous month, excluding the farming industry and government.
EURUSD M5: 45 pips price movement by ADP Non-Farm Employment Change news event