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News and Events that Affect Forex Market Dynamics and Volatility


Overall, the world of trading is highly volatile, and numerous events determine its trends every day. Knowing these events and keeping an eye open for these news in the global arena may help you make a fortune on wise and timely trading decisions. Learn about the most significant and influential events to look for in search of profitable deals in Forex.

Central Bank Rate Changes 

Changes in different countries’ Central Bank rates traditionally occur on a monthly basis, so it is strategically wise to track them and make trading decisions based on feasible changes. The Central Bank’s increase of rates typically leads to valuation of currency, the unchanged or reduced rates of which may have different effects on it depending on the overall economic perceptions.

GDP Reports

Since GDP determines the national economic health and affects tempos of economic growth, monitoring national GDP statistics may also help to make thoughtful and lucrative trading decisions. With downward GDP trends, the devaluation of currency may be expected in the near future.

Information on Inflation

This one is mostly determined by the Consumer Price Index, which reflects fluctuations in consumer prices and helps national banks to make policy decisions. Checking it becomes easier if you remember about metatrader 4 free download widely available today. Once the CPI rises, traders may expect the rise of currency value and can make a good profit on that fluctuation.

FOMC Meeting Reports

With the US dollar remaining a global currency on which the world’s trading community relies, reports of the US Federal Open Market Committee (FOMC) enjoy high influence on the Forex market’s volatility. FOMC reports usually do not contain open statements about further course of the Central Bank, but a talented and observant trader can find implied and suggested trends for investment decisions.

How to Trade on News Releases?

The daily issue of trading news is another traditional source of brokers’ information and decisions. Due to time difference, news is released at different times in different countries, and a thoughtful broker monitors them at the markets of interest to determine the current trends and anticipate market fluctuations. The key points significant to Forex market include the industrial production, unemployment rate data, business and consumer confidence polls, trade balance information, etc. The most volatile news reports relevant to the Forex market include those of NFP, FOMC, trade balance, CPI, and retail sales. Therefore, maximum attention should be focused on them for profitable decisions. All these are a potential source of viable trading data, but the most crucial aspect here is the timing of trading steps. While breaking news of global importance may have effects lingering for months in the market, the majority of regular news has a short-term of effect of 2-3 days.

Make sure you take all of these into account when trading. It will surely help you a lot.

If you don’t have enough free time or doubt your ability to predict market’s reaction to these important news there’s still a way to capitalize on them. During the last decade online trading industry evolved to provide solutions for people who aren’t professional traders. One of these solutions is using automated trading software which allows traders to execute orders on preset terms without physically being in front of their trading terminal. The software receives data feed from the exchange 24/5, so no big events and associated opportunities will be missed.


Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.