Trading Fundamaental Events

Fundamental Data Releases, of high importance, are often regarded as the supernova events of Forex Trading. Examples include US Non Farm Payroll, US Trade Balance, the US Unemployment Claims and the National Interest Rate Changes etc.

If you could correctly predict and then capture the resultant price movements created by Fundamental data releases, then this would, indeed, be very a profitable exercise. However, many Forex traders, especially novices, do not realise how difficult this is to achieve on an ongoing basis.

There is only thing that is predictable about Forex Trading and that is it is totally unpredictable. Fundamental Data Releases certainly epitomize the intent behind this statement as they can produce massive spikes in one direction only to fully reverse shortly afterwards as already explained. However, there are definitely rewards that are there for the taking if you can master and tame this type of trading.

The deciding factor in whether a fundamental release will generate market movement depends on how close the result matches the economists’ prediction. A close correlation will cause little change as the market has already priced in this effect. However, if the releases strays from the anticipated number then this could cause serious movements.

To attempt to understand every facet of a subject as complex as Fundamental data releases is a lifetime’s study.