The news is important. Fundamentals move the market. I do not trade the news but I do pay attention to it. If there is major announcement, like the Federal Reserve, I generally get out of the market in advance, and then wait until the market settles down. Small announcements often do not affect the market. It depends on the timeframe you are trading, time of day of the announcement and the announcement itself. Try the Forex Factory. They have a list of announcements and weight them according to importance. There are other websites with this information as well.
As far as news agencies like the BBC and CNN, I do not pay much attention to them. By the time they get the news the market has already reacted. If a major sudden earthquake causes suspected catastrophic failures of important oil refining or producing capabilities, the market is likely to react significantly and suddenly. There is nothing you can do when this occurs in the middle of a trade. You cannot prepare for significant unexpected market events except by sticking to your money management strategy and hope you are on the winning side of such an event. If you are not in a trade the market is likely to move with the spreads being affected before you know what is going on.
As far as weighting the news I cannot answer that question, I am not an economist. The Fed is obviously very important concerning the dollar. A minor announcement in Australia when the US market is closed is not likely to have much effect on the dollar. Since I do not know which way the market will go after an announcement, I get out if I feel the announcement will have some significance to the issue I am trading, let the market do its thing, and then get back in again according to my trading plan. I keep it simple.
As far as news agencies like the BBC and CNN, I do not pay much attention to them. By the time they get the news the market has already reacted. If a major sudden earthquake causes suspected catastrophic failures of important oil refining or producing capabilities, the market is likely to react significantly and suddenly. There is nothing you can do when this occurs in the middle of a trade. You cannot prepare for significant unexpected market events except by sticking to your money management strategy and hope you are on the winning side of such an event. If you are not in a trade the market is likely to move with the spreads being affected before you know what is going on.
As far as weighting the news I cannot answer that question, I am not an economist. The Fed is obviously very important concerning the dollar. A minor announcement in Australia when the US market is closed is not likely to have much effect on the dollar. Since I do not know which way the market will go after an announcement, I get out if I feel the announcement will have some significance to the issue I am trading, let the market do its thing, and then get back in again according to my trading plan. I keep it simple.
