At the start of each trading session, you will receive an email with the author's new posts. In the fast moving world of currency markets where huge moves can seemingly come from nowhere, it is extremely important for new traders to learn about the various economic indicators and forex news events and releases that shape the markets. Indeed, quickly getting a handle on which data to look out for, what it means, and how to trade it can see new traders quickly become far more profitable and sets up the road to long term success.

Trading technical chart patterns can be extremely profitable but one must always be aware of the fundamental story which is ultimately driving the markets.

The decision they have to make is whether to leave rates unchanged, raise rates or lower rates and the outcome of this decision is extremely important to the currency of the economy and as such, to traders.

An increase in rates is generally seen as bullish for the currency meaning it will increase in value and a decrease in rates is generally bearish for the currency meaning it will decrease in value whilst an unchanged decision can be either bullish or bearish depending on the perception of the economy at the time.

This is also where monetary policy is announced, which concerns vital matters such as the implementation of QE, which we explain thoroughly in our Forex Mastercourse.

Some of the best trades you can make come from rate decisions, for example, since the ECB cut the EuroZone rate to 0. GDP The Gross Domestic Product is an important indicator of economic health in a country.

When GDP falls below market expectations, currency values tend to fall and when GDP outdoes expectations, currency values tend to rise. CPI Inflation Data Consumer Price Index is the most widely used inflation measure out of the various economic indicators. The index gives information about the historical average prices paid by consumers for a basket of market goods and highlights whether the same goods are costing more or less for consumers.

Central Banks monitor this release to help guide them in their rate and policy setting. If inflation is seen to be evident, and moving beyond a certain target then interest rate rises are used to counter this. In November , Canadian CPI beat market expectations of 2. Unemployment Rate The unemployment rate of a country is crucial to markets given its importance to Central Banks as an indicator of the health of an economy. Higher employment leads to interest rate rises as Central Banks aim to balance inflation with growth and as such this figure draws huge market attention from traders.

Alongside the Unemployment rate the two most important labour statistics are the US ADP and NFP figures released each month with the NFP taking prime position.

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This figure is so important we do an NFP preview each month giving you our analysis on the release and how to trade it. The ADP data is considered an important predictive tool for the NFP as it is released beforehand.

FOMC meetings can cause huge market volatility as seen on March 18th when EURUSD spiked up pips in a matter of minutes as markets perceived the meeting to be USD negative. These Central Bank meetings are where we also learn about any changes in monetary policy, such as the announcement of quantitative easing.

This is extremely important to currency traders and we explain this topic fully within our course. Since the ECB announced their latest QE program on Jan 22nd of this year, EURUSD has fallen by over pips The key thing with all economic indicators and news releases is not just what the actual release means but how the market anticipates the release and subsequently reacts to it, this is where the trading opportunities are created.

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It can be extremely difficult for new traders seeking to trade news events as the volatility and uncertainty can be overwhelming, fortunately we have a fantastic suite of indicators which are perfect for trading news events. Information on these pages contains forward-looking statements that involve risks and uncertainties.

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How to Trade Forex after a Major News Release

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