How to trade news and macro events
Why News and Macro Matter So Much
Prices move because expectations change. Economic data, central bank meetings, political decisions and unexpected crises continually reshape those expectations, influencing the outlook for growth, inflation, interest rates and risk appetite. In currency markets, central banks act as the main anchor. When traders expect a central bank to raise rates or maintain tight policy for longer, that currency often strengthens, while expectations of cuts tend to weaken it. Research and market commentary throughout 2024–2025 highlight how shifts in policy projections have driven major exchange-rate moves in both developed and emerging markets.
