(Forex) Trading only the currencies with major news that week?

A

addminuslast

Seems like news moves price not only after the initial move? But it kind of gives direction for further moves for the next few days after news release?

While other pairs with no news release tend to move sideways?

So trade only the ones with major news releases that week? Like USD if there's NFP, and AUD if there's a cash rate decision?
 
lots of forex coaches teach trading currencies when there is major news announcement.

unfortunately there are not many major news that move the currencies.
currencies could be rather immune to news announcement
 
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well i have seen nfp days when nothing happens....

it depends what happens going into nfp......whatever happens going into nfp gets amplified, if you know what i mean
 
In stocks it is called post earnings announcement drift. Google it and read the academic studies. It takes time for big accounts to position.
 
maxinger said:
lots of forex coaches teach trading currencies when there is major news announcement.

unfortunately there are not many major news that move the currencies.
currencies could be rather immune to news announcement
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Currencies move on interest rate expectations between the two countries.
 
addminuslast said:
Seems like news moves price not only after the initial move? But it kind of gives direction for further moves for the next few days after news release?

While other pairs with no news release tend to move sideways?

So trade only the ones with major news releases that week? Like USD if there's NFP, and AUD if there's a cash rate decision?
More...
It depends on the news, its impact and surprise (deviation from consensus). Big money tend to move slowly while HFT demonstrate quick reaction. Taking into account this information and overall news impact you can estimate how "protracted" will be a news-induced move.

But keep in mind that you can usually expect a spike in volatility if news impact is big and you have to position your trades accordingly.
 
maxinger said:
lots of forex coaches teach trading currencies when there is major news announcement.

unfortunately there are not many major news that move the currencies.
currencies could be rather immune to news announcement
More...
Even NFP and FOMC?
 
pipeguy said:
It depends on the news, its impact and surprise (deviation from consensus). Big money tend to move slowly while HFT demonstrate quick reaction. Taking into account this information and overall news impact you can estimate how "protracted" will be a news-induced move.

But keep in mind that you can usually expect a spike in volatility if news impact is big and you have to position your trades accordingly.
More...
big hft are actually excuting and filling order for big customers..helloooooooo
 
I developed a model handful of years ago, automated it, it only trades reports, on any given trading day 24 hours a day, many reports around the world comes out. Just never know which reports makes markets move.
 
Handle123 said:
I developed a model handful of years ago, automated it, it only trades reports, on any given trading day 24 hours a day, many reports around the world comes out. Just never know which reports makes markets move.
More...
You can develop a model to trade Futures on FOMC's meetings
 
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