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.
π Updated Monthly
β’
β‘ Quick Reference
β’
π― Actionable Strategies
π¨ HIGH IMPACT NEWS EVENTS
πΊπΈ USD Events
- β’ Non-Farm Payrolls (NFP) - 1st Friday
- β’ Federal Reserve Rate Decision
- β’ FOMC Meeting Minutes
- β’ Core CPI & CPI Data
- β’ GDP (Quarterly)
- β’ Unemployment Rate
πͺπΊ EUR Events
- β’ ECB Rate Decision
- β’ ECB Press Conference
- β’ Eurozone CPI Flash Estimate
- β’ German IFO Business Climate
- β’ Eurozone GDP
π¬π§ GBP Events
- β’ Bank of England Rate Decision
- β’ UK CPI & Core CPI
- β’ UK Employment Change
- β’ UK GDP
π NEWS TRADING STRATEGIES
π― Breakout Strategy
Place pending orders above/below consolidation range before news
- β’ Set buy stop 5-10 pips above resistance
- β’ Set sell stop 5-10 pips below support
- β’ Cancel unfilled order after breakout
β‘ Straddle Strategy
Place buy & sell orders equidistant from current price
- β’ 15-20 pips above & below current price
- β’ Use OCO (One Cancels Other) orders
- β’ Best for high volatility news
π Fade Strategy
Trade against initial news reaction (contrarian)
- β’ Wait for initial spike to exhaust
- β’ Look for reversal signals
- β’ Higher risk but good R:R potential
β οΈ RISK MANAGEMENT RULES
Before News (Pre-Market)
- β Reduce position size by 50% or more
- β Widen stop losses to account for volatility
- β Check economic calendar daily
- β Avoid trading 30 min before major news
During News Release
- β Use tight stop losses (10-15 pips max)
- β Trail stops quickly on profitable moves
- β Monitor spreads - they widen significantly
- β Be ready to exit if price whipsaws
π 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
π VOLATILITY INDICATORS
LOW VOLATILITY
ATR < 50 pips β’ Tight ranges β’ Avoid news trading
MEDIUM VOLATILITY
ATR 50-100 pips β’ Good for breakouts β’ Standard risk
HIGH VOLATILITY
ATR > 100 pips β’ Extreme caution β’ Reduce size
Pro Tip: Check VIX and currency volatility indices before major news events
π± 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 |
β PRE-NEWS TRADING CHECKLIST
π Preparation (2 hours before)
β‘ Execution (15 minutes before)
β οΈ Remember: News trading is high-risk, high-reward. Never risk more than 1-2% of your account on a single news trade!