Trading the News: EUR Retail sales

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Posted by ForexNigeria on Wednesday August 3, 2011 at 11:6:15:

One of the biggest impact news for the Euro today was the retail sales report which was released at about 10.00 am Nigerian time.

Initially, EU/USD has been only rising slowly due to the Euro session and was at about 1.4230 to the USD.

Prior to the 10am news, it slid a bit lower to about 1.4269 and then when the news happened it rose higher.

Although the news report was a moderate impact news, price really went up as high as 90 pips.

Now if you had interpreted the news properly and knew that a higher retail sales rate would be bullish for the Euro, then you would have bought some Euro and wait it out for some great pips. News reports like these are where a lot of people make a lot of money. Some even invest up to 50% of their money into it just to make easy money. News reports like these already give you a good idea of where the price will be going to.

In order to trade news reports like these, you should enter a trade about the exact time the report is released or 5 mins later and widen your stop losses to be able to withstand volatility.

Imagine if you have risked something like $100,000 using only $1000 and the margin of 100:1 Marketiva gives, then you could have made about $900 but you shouldn't trade with $1000 if you don't have about another $1000 extra to lean on.

So with Eur retail sales, a higher than expected reading should be taken as positive/bullish for the EUR and vice versa.

For this case, the
Previous reading was -1.1%
expected reading was 0.5% but the actual reading became 0.9% which was higher than what was expected by a huge 0.4% so it went bullish for over 90 pips in just 30 minutes.

Don't miss trades like these.

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