A free news plug is what most brokers have in with their deal station. The headline "economic markets move the forex trade and currency traders are at a big advantage" is sure to attract many. As this news is let out instantaneously at many outlets like Bloomberg, Dow Jones, CNBC etc. But they charge a lot of money for their speeds, so that the spikes, that occur when the numbers are outside the expected, can be traded on. And there are times when these have affected the market for days also.

But what we do is, trade based on fundamentals and technical analysis. Also we hit the entries and exits with technical analysis as well. Economic and geopolitical news is what drives the market and the central banks, MNCs (Multinational Corporations), hedge funds and investment banks, being the important players, all plans and capitalize on the above facts. And what drives the currency pair rates towards the Fibonacci, pivot, support and resistance levels is the release of these economic numbers.

The clue to find out if the market is waiting for the release of an all-important announcement can be found in the economic calendar. The cost might move big if traders take position before hand or it could even go into consolidation. To find out if the price would move a considerable distance, just find if the released figure varies considerably for the expected.

You can have trade when there is no commotion in the market, or after a new let in, or even before a new release, but do not forget to have a stop loss in protective places. Though the market can move 100 pips in less than 30 sec, the trading part is not always clear. Prices could defy logic and go in the opposite direction. As well could be the numbers from the previous months as they could be revised! Non-farm payrolls, trade figures, retail sales, durable goods, CPI (Consumer Price Index), treasury international capital, current accounts and advance GDP (Gross Domestic Product) are few of the major reports released for the USA.