Forex Trading Market News

Any news, either big or small, can have an impact on the Forex market, but that doesn't mean you can't anticipate it. Major economic news brings drastic changes to the Forex market. This volatility is the reason why many traders entered the market in the first place, to make a lot of money, quickly. Be aware that when you can earn a lot of money in a short time, you can lose it even faster.

Let's have a look at how you can predict important news.

Fixed Press Releases

Not all news comes randomly, especially economic press releases concerning inflation and GDP. Make sure to use an economic calendar that includes all data of the currency pair you are trading.

For a clear and complete overview of all major financial news, check out our economic calendar.

In the lead up to these influential press releases, spreads will widen as large liquidity providers look to contain their risks. The big currency pairs will have lower spreads while emerging market currencies have wider ones.

Not For The Weak Hearted

Even though you know when the news is coming, and you think you know which way the market will go, trading is not a science, many surprises still occur. Therefore, take note of the volatility when trading on the news, meaning when the data hits the world or immediately afterward. If you do, make sure to have an exceptionally solid strategy in place, with backup plans from A to Z.

Most traders, especially beginners, are advised to protect their heart and trade before or after the news. Trading before a press release has the least surprises to it. It is a good time for trading ranges or trading with the trend.

If you are not sufficiently brave to trade on it and patient enough to wait for the news to settle in, you might be able to see some signs where the market will go. That's called trading after the press release.

The underlying message here, the same as with everything related to investing, is to be aware of the risks. Always prepare yourself for every possible outcome. Check out our other posts for more tips and tricks to improve your trading results.

When you are ready to start your trading adventure, you are welcome to open an account with FBS. We will provide you with the tools to keep you updated on all trading news.


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