Economic Calendar Announcements

davednl88

Hi Guys,

I am a novice trader, so still have a lot to learn. I am looking for some information or perhaps some tips/ guidance when it comes to trading on economic announcements. I have tried my best to understand, but am struggling with the market reactions when the news is released. The simple if it is a positive result should equal a bullish reaction, often doesn't work for me. I also have difficulty choosing the correct expiry time. Any advice out there?
Thanks in advance!

Okane

Hey!
First explain to us what exactly it is you are doing?

I like using ForexFactory.com
A positive result does not mean a bullish reaction.
Let me demonstrate with an example:

NFP coming out at 15:00 that affects USD.
The impact will be high according to ForexFactory
and their forecast claims results above 240K means it will
have a positive effect on USD.
This means that EUR/USD will FALL not RISE. Why?
Because in this pair, the base currency is EUR. What happens
when you divide something small by something big? The number falls.
Hence, positive news for USD means bearish movement on the EUR/USD.
We saw this happen last Friday! Look at the charts and ForexFactory and you'll understand.
But another pair where USD is the base pair should rise. You with me so far?

As for expiries, I think trading fundamentals is difficult and there are various things to keep track of.
For example, there could be other high impact news right after each other with opposite results, resulting
the asset to keep consolidating in an area, jumping up and down. But the example in Friday was a great example
where both major high impact news were good for the USD and you could expect the pair to stay bearish until the end of the day.
I have a friend who is good at trading fundamentals, usually he places one hourly trade and one end of day.
But he is experienced when it comes to fundamentals so you should practice more.