Gross Domestic Product Deflator. Kalau lagi ramai sekali jumlah data yang dirilis sangat banyak , maka data yang low impact tidak akan diperhatikan, data yang medium impact bisa tidak ada efeknya, dan data yang high impact bisa hanya berdampak sedang terbatas atau bahkan tidak berdampak jika dirilis bersamaan dengan data high impact lainnya. Economic indicator news What do you know about Forex rates? So you can quickly scan and see what currencies might be affected today or in some specific days.
Set your own trading terms! In order to manage the large amount of news and events presented, and to make your trading more effective, you should: Set your time zone. The FXStreet economic calendar will automatically translate each event into your local time.
Select the date range to focus on news in a specific period or even a single day. Choose the country, category, volatility and click "Filter Results". Become a Client Do you need more Forex information and analysis? These are also the times at which you should be paying extra attention to the markets if you plan on trading news releases.
When trading news, you first have to know which releases are actually expected that week. Second, it is key for you to know which data is important. Generally speaking, these are the most important economic releases for any country:.
Interest rate decision 2. Inflation consumer price or producer price 4. Business sentiment surveys 7. Consumer confidence surveys 8. Depending on the current state of the economy, the relative importance of these releases may change.
For example, unemployment may be more important this month than trade or interest rate decisions. Therefore, it is important to keep on top of what the market is focusing on at the moment. According to a study by Martin D. Evans and Richard K. Lyons published in the Journal of International Money and Finance , the market could still be absorbing or reacting to news releases hours, if not days, after they are released.
The study found that the effect on returns generally occurs in the first or second day, but the impact does seem to linger until the fourth day. The impact on the flow of orders, on the other hand, is still very pronounced on the third day and is observable on the fourth day. The most common way to trade news is to look for a period of consolidation ahead of a big number and to just trade the breakout on the back of the number. This can be done on both a short-term basis within one day intraday and a daily basis.
After a weak number in September, the market was holding its breath ahead of the October number, which was to be released to the public in November. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point. For news traders, this would have provided a great opportunity to put on a breakout trade, especially since the likelihood of a sharp move at this time was extremely high.
We mentioned earlier that trading news is harder than you might think. The primary reason is volatility. This chart shows activity after the same release as the one shown in Figure 2, but on a different time frame to show how difficult trading news releases can be.
On November 4, , the market had expected , jobs to be added to the U. This sharp disappointment led to an approximately pip sell-off in the dollar against the euro in the first 25 minutes after the release. One thing you should keep in mind is that, on the back of a good number, a strong move should also see a strong extension. The answer to capturing a breakout in volatility without having to face the risk of a reversal is to trade FX SPOT options. A number of different FX brokers offer a variety of exotic options.
Exotic options generally have barrier levels and will be profitable or unprofitable based on whether the barrier level is breached. The payout is predetermined and the premium or price of the option is based on the payout. The following are the most popular types of exotic options to use to trade news releases:. A double one-touch option has two barrier levels. Either one of the levels must be breached prior to expiration in order for the option to become profitable and for the buyer to receive the payout.
If neither barrier level is breached prior to expiration, the option expires worthless. A double one-touch option is the perfect option to trade for news releases because it is a pure non-directional breakout play. A one-touch option only has one barrier level, which generally makes it slightly less expensive than a double one-touch option.
This is a good option to buy if you actually have a view on whether the number will be stronger or weaker than the market's consensus forecast. A double no-touch option is the exact opposite of a double one-touch option.
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