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Which news to avoid when trading EURUSD?

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agu2a
65
agu2a 2016.11.26 23:30 

Hello all,

I'm curious to know about news that are big movers for trading and potentially changers of trend. I know the first Friday of every month is the NFP which can be very volatile... are there any other news that tend to be market movers?

Markit PMI ?
Interest Rate Decisions ?

Joel Simmons
3317
Joel Simmons 2016.11.27 00:15  
Interest rate is perhaps the biggest other then elections. Unemployment is consistently volatile each week, so you would have a payday every Thursday, but not enough to change a trend. The trend changer would be interest rates.......whenever they do change. 
Muhammad Syamil Bin Abdullah
881
Muhammad Syamil Bin Abdullah 2016.11.27 00:19  
Interest Rate Decision. Also watch out next week Italy Referendum which will impact on Euro.
agu2a
65
agu2a 2016.11.27 01:21  
Muhammad Syamil Bin Abdullah:
Interest Rate Decision. Also watch out next week Italy Referendum which will impact on Euro.
Very true... that i going to be a big mover... Same thing with Interest Rate for the US... it is expected that US will raise them but if they don't that could also go in favor for the Euro
agu2a
65
agu2a 2016.11.27 01:21  
Joel Simmons:
Interest rate is perhaps the biggest other then elections. Unemployment is consistently volatile each week, so you would have a payday every Thursday, but not enough to change a trend. The trend changer would be interest rates.......whenever they do change. 

Thanks Joel, interesting observation. 

Sergey Golubev
Moderator
93667
Sergey Golubev 2016.11.27 09:00  
Economic Releases that Move the US Dollar

How the market reacts to economic releases is generally determined by two factors:

1. How important the market considers a particular release to be.

2. How close to market estimates the number comes in at. Remember that markets anticipate news, so generally if an economic release comes out as expected, there is very little if any market reaction to that release.


How important the market considers a particular economic release to be, is something that changes over time depending on what is happening from a US Dollar fundamentals standpoint. If there are worries that the economy is going into recession, then the market is going to be extra sensitive to any numbers, such as non farm payrolls and consumer spending, which may provide early warning signs that this is the case. Conversely, if the economy is heating up and the markets are worried that inflation may become a problem, then the most market moving numbers may be price data releases, such as the CPI and the PPI. For your reference, in order of importance were:

1. Non Farm Payrolls
2. FOMC Releases
3. Retail Sales
4. ISM Manufacturing
5. Inflation
6. Producer Price Index
7. The Trade Balance
8. Existing Home Sales
9. Foreign Purchases of US Treasuries (TIC Data)


 

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