News Release Surprises
At other times surprises can come by way of better or worse than expected economic data. By and large, market participants will be fully informed as to when economic data is due to be released and will be able to plan their trading activities around such events.
Even when new release dates and their times are known, the actual data and rhetoric for the authorities has a way of surprising the market from time to time. This can be an issue, especially for new traders, who are often completely unaware of the impact certain news events can have on the price movements of currency pairs. It is not uncommon for a new trader to sit before the trading station wondering why the market is suddenly going against the newly entered trade position so quickly and by such a large amount.
How to side step this risk - No serious Forex trader will start a trading day without knowing what economic data is due to be released and which market shaker and mover is due to speak and for how long. DailyFX provides a free, and a near comprehensive economic, calendar that shows the scheduled economic release for all the major economies. It also rates each of the news events as having a low, medium or high chance of moving the market.
News events that usually move the market include: employment data (jobless claims and unemployment rates), inflation rate, interest rate changes, GDP numbers and any change in fiscal and monetary policy on the part of the governments and central banks.