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News trading has been becoming increasingly popular among Forex traders because it offers opportunities to make large profits within a relatively short period of time. However, just like not all fingers are not the same, not all macroeconomic news events have a similar impact on the market. For example, the German Flash Manufacturing PMI will always have more impact on the Euro compared to the French Flash Manufacturing PMI.
If you have opened an economic calendar, you can already see which news higher impact on the market and others that you can easily ignore. For example, if you are trading the Australian Dollar, you can easily ignore the Conference Board’s month-over-month Leading Index reading, as it will hardly move the price of AUD/USD or AUD/CAD, and even if it does, the movement will probably not change the prevailing trend.
Compared to low impact news like the CB Leading Index, the unemployment rate of Australia or the overnight cash rate set by the Reserve Bank of Australia (RB...
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