Sessions and events
Interest rate decision
A central bank's scheduled announcement of its policy rate. Rate differentials drive currency valuations, so these decisions and the guidance attached to them are the largest scheduled events in forex.
GFN’s figure
Rate decisions are high-impact releases under GFN's news rule. On a funded account, profits from trades opened or closed within 3 minutes either side may be removed.
In detail
Interest rate decision,explained
The rate itself is usually anticipated. What moves markets is the guidance about what comes next, which is why a decision that matches expectations can still produce a large move.
Rate decisions also reset swap costs, so a position held across one can find its overnight financing materially different afterwards.
Related
Terms thatcome with it
Most rules only make sense next to the ones they interact with. These are the entries this one depends on.
FOMC
The Federal Open Market Committee, the body that sets US interest rates. Its scheduled decision, written statement and press conference move every dollar-denominated market, usually in two distinct waves about half an hour apart.
CPI release
The monthly consumer price index, the headline measure of inflation. It drives interest rate expectations more directly than almost any other release, which is why it moves currencies, metals and index instruments simultaneously.
News trading
Trading around scheduled economic releases, where volatility and spreads both spike at once. The strategy depends on execution quality at exactly the moment execution quality is at its worst, which is why most firms restrict it on funded accounts.
Swap
The financing charge or credit applied to a position held past the daily rollover. It reflects the interest rate difference between the two sides of the pair and can be positive or negative.
Economic calendar
A schedule of upcoming data releases with their expected impact, previous readings and forecasts. Checking it before a session is the cheapest risk control available to a trader.
Also governed by /rules/news-trading
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