News Movers and Bank Holidays

Posted by Siwei at 6:17 PM Sunday, April 26, 2009
For the week starting 26th April 2009, a quick check with the economic calendar allows us to recognise major news movements and identify blackout periods where we should avoid trading.

A good example would be the several bank holidays scattered along the week would imply lower trading volume for the currency pair. (Eg. Australia bank holiday on Monday, Japan bank holiday on wed and Europe bank holiday on Friday would normally suggest bigger spread and smaller market movements for the currencies affected. This might increase the time taken for the positions to reach the target price.

Next, the US FOMC statement together with the Fed Fund rate announcement is scheduled to be announced on Thursday 2.15am. Early identification of such critical movements would warn us to stay out from the market or to re-adjust our stop loss to factor in wider volatility during that hour. Lastly on Friday, the manufacturing PMI for both Britan and United States might create some leading effect earlier on in the week.

All in all, we should always lookout for setups, identify good entry criteria during the week and adopt the correct target profit calculation to stretch the trade potential.
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