Historically, what type of news create the most price movement? Is there a resource somewhere I can look at? Right now I have the red filter on at forexfactory but even so, some of them barely create any movement.
Major central bank interest rate decisions where market consensus is expecting a rate hike / decrease with probabilities over 70% & US NFP figures, to name a few.
The problem I found is there is no one event that moves price. It’s a combination of all the events as a whole, as well as what the institutional traders are doing. In addition to FOREX unlimited suggestions subscribe to these two threads. They recap and update though out the sessions
I use a combination of this
London Session Recap – June 12, 2014 | Forex Blog: Pipnoculars look on the right side of page to “Subscribe by email” Personally I think this is one of the best information sources out there.
Next check out and add this information into the mix
Currency & Forex Trading News - Bloomberg
If you don’t have a clear picture, jump ship and wait for 30 minutes after the major events. (in this case, no honor in going down with the ship)
Good Luck
Gp
It really depends on what’s expected and what the actual report is. For example if a report comes in line with expectations it may not move the market at all.
I agree. Last week’s NFP report was just one example. When markets have priced in a certain number which is met with no surprise even a ‘red flagged’ event can create a rather dull reaction. You need to take a look at the bigger picture rather than just focusing on one single number or release.
O yes…Last week’s NFP was one of the first releases in a long time in which I was just an observer for. Can’t remember the last time I didn’t participate- the market just didn’t move.
One good resource is trading economics com - some good chart work and no commentary attached.
Also keeping up with current news helps, e.g this from couple of hours ago:
BBC News - UK credit outlook ‘stable’ says Standard & Poor’s
Also it can be possible to get a handle (not a bias) on upcoming news, e.g UK Building pmi in early July:
Output in the Construction Industry, April 2014 and New Orders Q1 2014 - ONS
Or the MPC vote count release for FOMC Wed, imagine the reaction if not 0-0-9, especially if the CPI data the preceding day happens to disappoint the bulls, what would they do then?
This type of forward thinking helps achieve a ‘feel’ for news and possible reactions.