Trading the News
Learn how to trade around high-impact economic releases like NFP, CPI, and central bank decisions.
Last reviewed: 2026-03-06
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Overview
News trading involves positioning before or after major economic releases. Key releases include non-farm payrolls (NFP), CPI, GDP, and central bank rate decisions. Volatility spikes around these events; manage risk with wider stops or avoid trading during releases.
Key Releases
NFP (first Friday of month, US jobs), CPI (inflation), GDP (growth), and FOMC/ECB/BoJ rate decisions. These move markets the most. Check the economic calendar weekly.
Before Vs After
Before release: low volatility, tight ranges. At release: spike, possible slippage. After: volatility often mean-reverts. Some traders wait 15–30 minutes for the dust to settle.
Risk Management
Use wider stops around news. Reduce position size. Consider avoiding trading during the release window. Slippage and widened spreads are common.
Calendar Use
Mark high-impact events on your calendar. Know the consensus and prior values. Surprises (actual vs expected) drive the biggest moves.
Knowledge check
1 of 3What is NFP and when is it released?
FAQ
Common questions about this topic.
What is NFP and when is it released?
Non-farm payrolls—US employment data. Released the first Friday of each month. One of the most volatile forex events.
Should I trade during news releases?
Beginners often avoid it. If you do, use wider stops, smaller size, and expect slippage. Many prefer to wait 15–30 minutes after the release.
What causes the biggest moves?
Surprises—when actual data differs significantly from consensus. A strong NFP beat or miss can move USD pairs 50+ pips quickly.
How do I use an economic calendar?
Filter for high-impact events. Note consensus and prior. Plan trades around releases—either avoid or position with appropriate risk.
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Disclaimer and sources
Educational content only. Not financial advice.
Important disclaimer
Forex trading involves substantial risk of loss. This content is for educational purposes only and is not financial advice.