How To Trade Economic News Events

When an economic release comes out, markets can react violently as traders enter and exit positions based on the new information.

Some news releases are more important than others. Non-farm payrolls (released on the first Friday of each month), CPI (inflation figures), and central bank announcements typically move the needle more than most, and these events see the sharpest price spikes.

Economic news events can offer low-risk trade set-ups so long as you are aware of three things: the market expectation running up to the event (what is priced in and what is not), the likely reaction from different outcomes, and the best way to play those outcomes.


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