Gauging Currency Strength Based on News Events | Forex Factory

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Gauging Currency Strength Based on News Events

  • #1
  • First Post: Jul 5, 2021 2:31pm Jul 5, 2021 2:31pm
Hi there guys, can you tell me if I should include the medium impact news when creating a table of Strong vs Weak currencies based on the economic calendar results?

I have been told to check medium and high impact, but TBH when I check the result of the medium impact news events on the chart itīs like it did not even tickle the market, so it feels like a waste of time including this data, not to mention adds to confusion.
  • #2
  • Jul 5, 2021 6:25pm Jul 5, 2021 6:25pm
and there are always those unexpected new announcements!

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Regards your observation of tickling the market, look at it this way, most people confuse the underlying Fundamental status with News

Major News can be about the Fundamentals, most regarding the Interest Rates which drive the value of a currency; just have to see the reaction on the chart above.

Other News may or may not affect either the Fundamentals, or the Currency, and either for a short time or a long time.

Look to last Friday NFP "news" - there was a Fundamental shift to USD strength on all those USD pairs

BUT, is that strength going to continue this week? I'm just watching to see, there was a USA holiday on Monday, so it will be interesting next few days.

It takes a lot for me to IGNORE you, but you can try.
  • #3
  • Jul 5, 2021 6:56pm Jul 5, 2021 6:56pm
Quoting Gauer
Hi there guys, can you tell me if I should include the medium impact news when creating a table of Strong vs Weak currencies based on the economic calendar results? I have been told to check medium and high impact, but TBH when I check the result of the medium impact news events on the chart itīs like it did not even tickle the market, so it feels like a waste of time including this data, not to mention adds to confusion.
There are already too many factors that would complicate any signal you hope to extract from news events so I would focus only on the high-impact releases.
  • #4
  • Last Post: Jul 6, 2021 12:17pm Jul 6, 2021 12:17pm
Quoting Gauer
Hi there guys, can you tell me if I should include the medium impact news when creating a table of Strong vs Weak currencies based on the economic calendar results? I have been told to check medium and high impact, but TBH when I check the result of the medium impact news events on the chart itīs like it did not even tickle the market, so it feels like a waste of time including this data, not to mention adds to confusion.
Use high impact events and start with events where the price tends to move one way after the announcement. CPI new events for example.
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