NEWS TRADING

Welcome to our News Trading guide, and tips.  Information posted here is not a recommendation to BUY or SELL any currency. Traders should be aware of the extreme volatility in News Trading, and therefore trade the news with serious caution. Please see our Disclaimer Notice.

Week 3 April, 2016

Welcome to week 3 of news trading. An interesting week it will be as the market will shift radar to focus on Canada & UK's Interest Rate decisions. The outcome of both events would definitely stir up the market with volatility. The Australian Job Market and US Retail Sector would be on the table as well this week. Get set for action. Wish you a pipfull outcome. 

NB: See our summary analysis of our news trading results in 2015. Click Here

12th April, 2016 [UK - CPI y/y] Event Time: 4:30am EST | 9:30am GMT +1

The outcome of the UK's CPI might brighten or add more heat to the economic speculations around UK and also create more debates for the upcoming UK Brexit scheduled to take place on June 23rd 2016. If the deviation is met or exceeded then this underlying factors would stir up the market towards the direction of the result.

News Trade Type/Method: Normal/Market Order; Pending Order; Straddling Past Review: Performance has not been steady since this year. Recent outcome came out negative at 0.3% against a forecast of 0.4%.    Recommendation: BUY GBP if the CPI comes out 0.6%. SELL if we get a poor outcome 0.0. Recommended Pairs: GBPJPY, EURGBP, GBPUSD, GBPCHF, GBPCAD Get Actual News Release Result Directly On Your Trading Platform: Download FX Pulse 4.0 (FREE) Tweet

13th April, 2016 [US - Core Retail Sales]

Event Time: 8:30am EST | 1:30pm GMT +1

An outlook into the performance of the US Retail Sector would be unveiled today by the Census Bureau. The outcome will generate concerns depending on what comes out due to the negative outlook on the USD off recent.

News Trade Type/Method: Normal/Market Order; Pending Order; Straddling

Past Review: Inconsistent results especially on the negative side has been observed since this year. A recent negative revision eroded one of the best outcomes so far thereby creating a sour sentiment on the USD regarding this indicator. 
 
Recommendation: BUY USD if the Retail Sales comes out at 0.9%. SELL if it is reduced to -0.1%.

Recommended Pairs: AUDUSD, USDJPY, EURUSD, GBPUSD, NZDUSD

Get Actual News Release Result Directly On Your Trading Platform: Download FX Pulse 4.0 (FREE)

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13th Apr, 2016 [CAD - Interest Rate/Rate Statement]

Event Time: 10:00am EST | 3:00pm GMT +1

The Bank of Canada will today unveil to the public the decision on Interest Rate as regards to increasing it, reducing it (cut) or leaving it unchanged. However the concensus from many analyst is that rates would be left unchanged since it was recently changed (hiked) in January this year. This however would not douse the agitations today especially on the strong support for the Canadian Dollar. If the reverse is the case then expect a bombshell in the market. A press conference would be held an hour 15 minutes later.

News Trade Type/Method: Normal (Sharp Spike)/Market Order; Pending Order; Straddling

Past Review: Interest rate was increased to 0.50% from 0.25% in January 2016. This caused an improvement in the value of the Canadian Dollar.  
 
Recommendation: BUY CAD if the Interest Rate is increased further to 0.75%. SELL if it is reduced back to 0.25%. If the interest rate is left unchanged then study the market carefully before taking any action or stay out completely until the Press Conference.

Recommended Pairs: GBPCAD, CADJPY, EURCAD, CADCHF

Get Actual News Release Result Directly On Your Trading Platform: Download FX Pulse 4.0 (FREE)

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13th Apr, 2016 [CAD - Press Conference]

Event Time: 11:15am EST | 4:15pm GMT +1

This is coming up 1 hour 15 minutes after the release on interest rate. The BOC Governor & the Deputy Governor would address the press on Monetary Policy and decisions that led to the Interest Rate. Investors normally find clues of future Monetary Policies and their effects in the speech being delivered by the BOC Heads. We expect the market to react to certain proclamations which appears hawkish or dovish.    

News Trade Type/Method: Normal--Speech (Normal Spike)/Market Order; Pending Order; Straddling

Past Review: Nil  
 
Recommendation: Use the News Tab on MT4 to read highlighted phrases of the speech. BUY CAD if the overall statements appear Hawkish (i.e. positive statements or good economic outlook) SELL if the overall statements or a key statement is Dovish

Recommended Pairs: Same pairs in interest rate

Get Actual News Release Result Directly On Your Trading Platform: Download FX Pulse 4.0 (FREE)

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14th Apr, 2016 [AUD - Employment Change/Unem Rate]

Event Time: 9:30pm EST | 2:30am GMT +1

The Australian Job Market report is one of the important economic events to watch out for this week. The value of the Australian Dollar will be greatly impacted depending on the result. If we get a positive outcome then expect the AUD to move sharply. But if we get a negative outcome then the reverse will be the case.   

News Trade Type/Method: Normal(Sharp Spike)/Market Order; Pending Order; Straddling

Past Review: A glossary outlook of past events this year shows a dismal performance in Australia's job market. Recent event came out negative at 0.3K against a forecast of 11.6K.  
 
Recommendation: The spread value for the AUD pairs are quiet high and would be extremely high prior to the news release. So exercise great caution in trading this report. BUY AUD if the Employment Change increases to 43.6K and Unemployment Rate reduces to 5.8% or remains at 5.9%. SELL if Employment Change reduces to -6.4K and Unemployment Rate increases to 6.0% or remains at 5.9%

Recommended Pairs: AUDUSD, AUDJPY, EURAUD, AUDCHF

Get Actual News Release Result Directly On Your Trading Platform: Download FX Pulse 4.0 (FREE)

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14th Apr, 2016 [UK - Interest Rate/Bank Rate Vote]

Event Time: 7:00am EST | 12:00pm GMT +1

So much tension has already been generated prior to today's UK Interest Rate decision. The outcome therefore would cause some stir in the market most especially as it is tied to speculations on Brexit issues. Despite that an increase in interest rates would add more value to the GBP while a rate cut will send it down the hill. However most analyst are of the view that rates would be left unchanged until we get a position on UK's Referendum.    

News Trade Type/Method: Normal(Sharp Spike)/Market Order; Pending Order; Straddling

Past Review: Interest rates has not been changed for quiet a long time. Investors are eagerly expectant of a change.  
 
Recommendation: BUY GBP if the Interest Rate is increased to 0.75%. SELL if Interest Rate is reduced to 0.25%. If rates are left unchanged then watch out for changes in Bank Rate Votes to guide your next move.

Recommended Pairs: GBPUSD, GBPJPY, EURGBP, GBPCHF, GBPCAD

Get Actual News Release Result Directly On Your Trading Platform: Download FX Pulse 4.0 (FREE)

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14th Apr, 2016 [US - Core CPI m/m]

Event Time: 8:30am EST | 1:30pm GMT +1

The US Core CPI is a valued indicator used by the FOMC to guage inflation and then come up with decisions to peg interest rates. With the pressure on the US Feds to tinker with rates, the outcome of this report will create some sparks in the market depending on the results. The USD will either consolidate or depreciate further.   

News Trade Type/Method: Normal(Normal Spike)/Market Order; Pending Order; Straddling

Past Review: Performance has been good with two positive outcomes and only one negative outcome since this year.  
 
Recommendation: BUY USD if the Core CPI increases to 0.4%. SELL if it comes out at 0.0%

Recommended Pairs: AUDUSD, USDJPY, EURUSD, USDCHF, NZDUSD

Get Actual News Release Result Directly On Your Trading Platform: Download FX Pulse 4.0 (FREE)

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These are the high impact news release to watch out for in the 3rd week of April, 2016.