Impact of News Releases on Forex Markets

[Sbrown]

Hello traders,

I've noticed significant market movements during major news releases. How do you trade around important economic announcements? Do you avoid trading during these times or have specific strategies to capitalize on the volatility?

 

[Fin_Trader]

The problem is that such sharp and strong movements on the news can break any signals from your strategy and the readings of any indicators. Therefore, I prefer not to risk the deposit on such uncontrolled movements and look for entries into the market when it calms down.

 

[Jonathan Lee]

Trading around major news releases can be volatile but profitable. Some traders avoid it due to risk, while others capitalize on the volatility with strategies like news breakouts or using economic calendars to anticipate market reactions. It's crucial to manage risk and stick to a well-thought-out plan during such events.

 

[Fxzombie]

Some traders avoid trading when high-impact news is released, the impact can make volatility suddenly increase and it is difficult to predict, rather than take the risk they prefer not to trade and wait for the movement to turn to normal.