The news affects everything in and around the world. It does not matter if something happens on one side of the world everyone else around the rest of the world will be affected in some way shape or form and repercussions happen. It has been said as an example that if a person sneezes in America then the rest of the word will get a cold, and it is this example that is very much like the news and its effects on the world. This will also apply to Forex trading, with any news on investments or money this will have an underlying dealing with them and this makes currency pairs move around and not always in a good way.
The things that reflect in big price moves are: macroeconomics, the climate of the market, geopolitics worldwide and money and price actions. So how is it possible for Forex traders to make money with the news? What they do is trade using the Forex news. With the possibility of the market swinging both ways or in one direction the actual trading of the news against the release of the real result which is the expectation is the best way to do it. Depending on the gap which is between the release expectation and the gap of the figures that are real and published. Financial institutions use this system widely so they can bank in dollars and we mean millions of them or if it is in Euros from the Forex trading news.
There is a new list of releases planned each week and all of them can be analysed so when it comes to preparing for any kind of action people will be prepared. The range in Forex trading can range in unemployment, GDP, Oil Reserves, Real Estate, Inflation and so many other things too. This will also include the Bank of England and Federal Reserve statements, which they can shake the market with or move it. But the US releases are not the only ones that have an influence on the news traded releases they are also in the UK, Asia and Germany these have an effect directly on the market. When it comes to AUD and CAD it would be Australia and Canada that would have an effect on these but not with very many pip movements.