How to Trade Forex During News Events

Looking over the market today brought to my attention 2 significant events which, in my opinion, appear to have gone unnoticed by many forex traders. Being a currency analyst gives one the unique perspective of watching the economy for a living and being given access to some of the most up-to-date information on the market as it’s released, and seeing what impact it carries on the value of various currencies in real-time.

The 2 events I’m speaking of were both highlights in the  trading news. First was the German ZEW Economic Sentiment report, which is a measure of consumer confidence in the Euro-Zone’s largest economy. The second was the Bank of Canada’s (BoC) decision regarding its short-term interest rates. Both produced market-shocking results and moved the market substantially, but traders simply weren’t trading. More details please visit:-

The ZEW report came out much higher than anticipated and revealed that there is growing optimism in the Euro-Zone’s regional economy, which resulted in some moderate support for the EUR. Later in the day, the BoC surprised traders with a decision to reduce interest rates by 25 basis points, going against market forecasts which predicted that they would hold rates steady. The CAD responded by losing substantial value in the span of a few minutes.

Traders been paying close attention, they could have made substantial gains. Information about news events can sometimes be contradictory, but oftentimes there are those news events which produce very predictable results. These 2 major events are examples of this. The few traders who were in the market today made lucrative sums of money by going short on the CAD and long on the EUR. If you were one of them, then congratulations; if not, then ask yourself if you really are doing what it takes to be an effective forex trader.

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