Trading News Releases: NFP, CPI, and Central Bank Decisions

Economic news releases cause sudden, violent price movements. Spreads widen, slippage increases, and liquidity disappears for seconds. This creates both opportunity and danger — you can make 50 pips in 30 seconds or lose them just as fast.

• NFP (Non-Farm Payrolls): First Friday of each month, 13:30 SAST. Massive USD volatility
• CPI (Consumer Price Index): Inflation data — moves rate expectations and currency
• FOMC/ECB/BoE rate decisions: Central bank meetings — biggest market movers
• GDP: Economic growth data — quarterly impact

Place a buy stop above current price and a sell stop below, 5 minutes before the release. When price spikes, one order is triggered. Cancel the other immediately. Target: 20-30 pips. Risk: the other order could trigger first (whipsaw), resulting in a loss before the real move.

Wait 5-10 minutes after the release for the initial spike to exhaust. Enter in the opposite direction of the spike — markets often overreact and then reverse. Target: the pre-news price level. This is safer but requires patience and good execution.

Wait for the news to settle (15-30 minutes). Look for the real trend direction — the initial spike is noise, the follow-through is the trade. Enter in the direction of the follow-through with a stop at the spike extreme.

• Spreads can widen to 10-20× normal during news — your stop may fill at a terrible price
• Slippage is guaranteed — don't use market orders
• Guaranteed stops may not be available during news windows
• Brokers may disable trading for 1-2 minutes around major releases

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Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.

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