So on Wednesday ( 16/9/2015) , which was yesterday we had a good amount of news coming in from USA and UK.
This caused the GBP/USD to act like a lunatic. Being a lunatic myself i tried trading the cable and i lost about 50 bucks. Now i’ve learned from my mistakes I’m stuck with a few question in my head.
If I HAD decided not to trade the cable today, what other pairs could I have traded so that I would not have been affected by the news releases in any way which includes correlation as well…
2.Another question is that, if it is possible to trade the news, what are some of the strategies you guys use?
What are the types of news that I am able to trade and not trade?
That’s all
Any other suggestions based on news trading are also welcome.
Hey there! Sorry for the late reply, but here’s my take on your questions:
GBP/JPY is a pretty exciting pair to trade when it comes to UK news releases, especially if the Asian markets are closed by then and the move is mostly due to the pound’s reaction to the news rather than yen movement. Pound crosses are great for scalping too but they tend to be very volatile and can move by a hundred or so pips in minutes so just make sure you make the necessary risk adjustments (wider stops, trailing stop, etc)
For UK events, I normally try to take a straddle setup for GBPUSD ahead of CPI, jobs, and retail sales data. These reports tend to spur one-directional moves until the start of the US session so I just try to ride the initial reaction to the report.
The top-tier reports like the CPI, employment, spending, GDP tend to spur the strongest reactions so they’re good for news trades. Central bank announcements are also excellent to trade but of course there’s more risk involved.
