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Forex Economic News Impact Cheat Sheet
Your complete reference guide for trading major economic news releases with proven strategies, risk management rules, and optimal timing.
📊 Updated Monthly
•
⚡ Quick Reference
•
🎯 Actionable Strategies
🚨 HIGH IMPACT NEWS EVENTS
🇺🇸 USD Events
- • Non-Farm Payrolls (NFP) - 1st Friday
- • Federal Reserve Rate Decision
- • FOMC Meeting Minutes
- • Core CPI & CPI Data
- • GDP (Quarterly)
- • Unemployment Rate
🇪🇺 EUR Events
- • ECB Rate Decision
- • ECB Press Conference
- • Eurozone CPI Flash Estimate
- • German IFO Business Climate
- • Eurozone GDP
🇬🇧 GBP Events
- • Bank of England Rate Decision
- • UK CPI & Core CPI
- • UK Employment Change
- • UK GDP
📊 NEWS TRADING STRATEGIES
🎯 Breakout Strategy
Place pending orders above/below consolidation range before news
- • Set buy stop 5-10 pips above resistance
- • Set sell stop 5-10 pips below support
- • Cancel unfilled order after breakout
⚡ Straddle Strategy
Place buy & sell orders equidistant from current price
- • 15-20 pips above & below current price
- • Use OCO (One Cancels Other) orders
- • Best for high volatility news
🔄 Fade Strategy
Trade against initial news reaction (contrarian)
- • Wait for initial spike to exhaust
- • Look for reversal signals
- • Higher risk but good R:R potential
⚠️ RISK MANAGEMENT RULES
Before News (Pre-Market)
- ✓ Reduce position size by 50% or more
- ✓ Widen stop losses to account for volatility
- ✓ Check economic calendar daily
- ✓ Avoid trading 30 min before major news
During News Release
- ✓ Use tight stop losses (10-15 pips max)
- ✓ Trail stops quickly on profitable moves
- ✓ Monitor spreads - they widen significantly
- ✓ Be ready to exit if price whipsaws
🕐 KEY TRADING TIMES (GMT)
London Open
08:00 GMT
NY Open
13:00 GMT
London/NY Overlap
13:00-17:00 GMT
US NFP Release
13:30 GMT
📈 VOLATILITY INDICATORS
LOW VOLATILITY
ATR < 50 pips • Tight ranges • Avoid news trading
MEDIUM VOLATILITY
ATR 50-100 pips • Good for breakouts • Standard risk
HIGH VOLATILITY
ATR > 100 pips • Extreme caution • Reduce size
Pro Tip: Check VIX and currency volatility indices before major news events
💱 CURRENCY PAIR REACTIONS TO NEWS
| News Type | Typical Reaction | Best Pairs to Trade | Expected Move (pips) |
|---|---|---|---|
| US NFP | Strong USD reaction | EUR/USD, GBP/USD, USD/JPY | 50-150 pips |
| Fed Rate Decision | Broad USD impact | All USD pairs | 100-300 pips |
| ECB Rate Decision | EUR volatility | EUR/USD, EUR/GBP, EUR/JPY | 75-200 pips |
| CPI Data | Inflation expectations | Currency-specific pairs | 30-80 pips |
| GDP Release | Economic strength | Major pairs | 20-60 pips |
✅ PRE-NEWS TRADING CHECKLIST
📋 Preparation (2 hours before)
⚡ Execution (15 minutes before)
⚠️ Remember: News trading is high-risk, high-reward. Never risk more than 1-2% of your account on a single news trade!