Economic News Effects

[Magnoliacast]

Hey there. Just curious as to how long the general effect of economic news would last on the Forex's? Say the NFP has rolled out information and the market moves accordingly. Should the trader immediately close his/her position after about 2-3 hours, or should he/she keep it open for 2-3 days, time for the market to digest the information? Any and all answers are appreciated.

 

[Pharaoh]

If there's a really big surprise on NFP, there will very likely be a big spike. Profits from this need to be grabbed very quickly (seconds to a couple of minutes). Afterwards, there's a good chance of a pullback, some chance of after-spikes, and, depending on just how unusual the news is, a chance for a shift in market direction that could last hours, days, or longer.

Asking Peter on the Daily Signals thread for an NFP release could get you advice regarding what possibilities he sees for that specific release.

 

[theemilym]

I guess economic news can have a huge effect on the way that markets play out...

 

[fxstrategist]

News and fundamentals is what really drives the markets, especially interest rate decisions.

 

[jason19]

news are greatly effect market.

 

[dianajs]

It really depends on the news. Sometimes there's a whipsaw and volatility that lasts for a few hours, but in other causes they cause massive movements in a set direction that last for days.