hi.
i’m trying to learn how news affect trading and using babypips calendar for that. its a great tool. i pay attention to high impact news only. do news have high impact on many currencies or just on the currency of the country news are originating from? for example if high impact news are released in switzerland clearly this would have high impact on CHF-based pairs. however would those news also have a high impact on for example eur/usd? what pairs show high impact during high impact USD-news? what pairs show high impact during high impact EUR-news? what pairs show high impact during high impact GBP-news? what pairs show high impact during high impact JPY-news? etc…
I use the economic calender in my broker FXPRIMUS website. Generally speaking, high impact economic news affects the currency pairs that have the nation’s currency in it. So news on UK GDP results can affect the GBPUSD, GBPJPY, EURGBP etc.
However, markets events apart from the economic calender can also affect currency pairs. The recent Moody’s downgrade of UK credit rating is a good example. It placed tremendous selling pressure on GBP that are reflected in GBPUSD, GBPJPY and EURGBP.
I use fxstreet and investing.com economic calender… mostly high impact news fro USD will effect the highest impact to EURUSD currencies, and GBPUSD. but sometimes the GBP news also give impact to EURUSD and also EUR news give some impact to GBPUSD. the another news is Country news at EURO zone. is some country have some political and or economic issue. the news from that country will effect big impact too.
This paper analyzes the impact of scheduled and unscheduled news on several financial variables, paying particular attention to the effect on the conditional volatility of these variables. The impact of political and economic news items is assessed within a trivariate Garch scheme. Results show that: (i) news affects both the first and the second moment of the daily changes in the analyzed variables; (ii) there is a significant regime shift of the unconditional variance of the analyzed variables across the three different governments in charge over the analyzed sample; (iii) the conditional variances display a significant (albeit rather small) seasonal daily pattern; (iv) contrary to the conventional view, the impact of news on the conditional variance is more pronounced for exchange rates than for Italian long-term interest rates.
I use profiforex.com economic calender. When looking at news on investment from various parts of the world, it is good to take note of the interest rate because it is the determinative factor for the movement of currencies’ prices.
News trading requires understanding of economics something that most retail traders don’t have.
Try going to forexfactory they have different economic indicators there, from high impact to low impact…
I also look at Profiforex’s economic calendar, but I still new to trading though. I’ve also heard that most of the time the markets predict the fluctuations that happen and adjust accordingly ahead of time, so sometimes news events dont have that much of an effect on the market.
News is much more than just news - it should be used to further your understanding of what will happen in the markets in the future. The immediate reaction is always unpredictable.