Eurozone Manufacturing Sector Continues to Contract

[Rambo35]

We saw the release of individual as well as Eurozone manufacturing data. They all point to continued contraction, but business news are filled with this better-than-expected contraction. A contraction is a contraction and it is negative for the economy. We saw what happened back in 2008 when financial markets rallied on better-than-expected negative news. On top of that the rally came on the back of low volume.

When it comes to forex trading, currency pairs move after economic data is released. Do you adjust your positions based on economic releases? Personally I do not trade news events and stick to technical analysis and price action. I do think that economic news can offer great entry or exit points.

Looking forward to what you guys think about it.

 

[Eurex]

We saw the release of individual as well as Eurozone manufacturing data. They all point to continued contraction, but business news are filled with this better-than-expected contraction. A contraction is a contraction and it is negative for the economy. We saw what happened back in 2008 when financial markets rallied on better-than-expected negative news. On top of that the rally came on the back of low volume.

When it comes to forex trading, currency pairs move after economic data is released. Do you adjust your positions based on economic releases? Personally I do not trade news events and stick to technical analysis and price action. I do think that economic news can offer great entry or exit points.

Looking forward to what you guys think about it.

PMI below 50 is not good. Look for ECB press conf or FEDS conf or read some economic indicator book an its effects on currency, stocks etc. Dont trade immediately after economic indicator release wait 1-5 Min's and then go along the right direction because computer algos are trading during that time and they are way faster than you.

I tracked Oanda forex feed and compared it with EURUSD 6E futures and found it following the futures. and during news spread widens to 6 pip which is like $60 for entry/exit if taken imm trade => $120 for entering and exiting not a viable option to trade forex if spread is big around news. i moved away from Forex and went for futures where most of the time you have 1 tick spread only. which is great and you can put volume stop which saves a lot of money.

 

[Rambo35]

Thanks for your opinion. In general I do not trade news releases.