Which market reacts stronger to the news?

What pair of any market has the biggest single candle movement? Thank you

USD/CHF in daily chart back in December 2014, when the whole mess happened. The maximum was 1,0220 and the minimum 0.8319.

I mean which market has the strongest moves when some news comes out.

Nobody?

Probably GBPNZD (if we speak only of major currencies)

But what kind of news?

GBPNZD has the widest range of operations. Reaction depends on the type of news: war + conflict = foreign currency refuge (JPY, USD, CHF, EUR, GBP

I saw the GBPNZD chart but it doesn’t compare to what you see in EURUSD when there is NFP. Is there anything that moves more than that?

NFP is a USD data, so you should look at the older pairs. And yes, it is true that EURUSD is usually the one that moves most with NFPs.

So, as I understand it, the biggest movements in a single one-minute candle occur in the larger pairs of USD, right?

In future, the DAX takes the crown. Silver also has brutal swings. In currency, for me GBPUSD is the most moved.

Okay, so in future the reaction is also strong, I guess with the NFP as well?

What I don’t understand is how there are people who keep getting into news like NFP without a stop or a plan. It’s like jumping into a storm with a backpack full of stones. It’s not courage, it’s financial suicide. There’s ways to operate news, but you have to know what you do. Enter to see what’s going on is the shortest strategy toward the empty account. If you don’t have a clear methodology for high-impact events, you’d better not come near.

In my experience, GBPJPY also has quite violent reactions when some news comes out from the UK or Japan. It’s a couple that moves a lot even without news, so imagine when there are strong catalysts. Of course if you’re not used to managing volatility, this kind of pair will get you out of the operation in seconds. It’s not for novices or nervouss. But if you know what you’re doing, it can give you very profitable moves.

Many times beginner traders become obsessed with looking for the most volatile pair. As if more movement were equal to more profits. Nothing further from reality. The more movement, more risk, more errors, more stress. The key is not to find the pair that jumps the most with news, but the one that fits your strategy, your risk management and your personality. Most don’t need a crazy market, it needs consistency.

Once I entered EURUSD just when the NFP came out. The spread multiplied by five, I was run with sliding and the operation lasted less than ten seconds. I lost more in commissions than in the operation itself. Since then I learned to stay out for the first few minutes after publication. Sometimes the best entry is the one you don’t make. You have to be patient, that the market isn’t going anywhere.

Gold is also of care. With certain news you can move more than 100 pips in minutes. If you do not have a millimeter control of the lot, it is easy to melt the account with a single error. Yes, for those who know how to read the macroeconomic context and the feeling of market, gold can be a mine (never better said

And what do you tell me about NASDAQ? When some inflation data comes out in the U.S., that index goes completely crazy. 200-point sails in a matter of seconds. Brutal. The problem is that not all brokers run fast either. So as good as your input, if the platform stays frozen, it doesn’t matter. You have to have tools at the level of the asset you operate.

I once operated the DAX right at a press conference at the ECB. I don’t know what was worse, whether the movement or the scare I took. I thought the chart was broken. It took me out at -60 points and then climbed 200. I never went in without knowing exactly what was to be announced and when. It’s not just about seeing the calendar, it’s about understanding what the market is waiting for. The DAX doesn’t forgive you.

For me, the couple who react most with news is USDJPY. Especially with interest rate decisions or statements from the Bank of Japan. It is noticeable that the market is ultra sensitive to any comment. The good thing is that being a very liquid pair, movements are seen coming if you know how to read the flow. It is not like others that nail you with crazy candles. Here the reaction is fast, yes, but cleaner.

I think that more than looking at what kind of reaction is most, we should talk about what kind of news generates the greatest impact. It’s not the same unemployment rate as an unexpected inflationary data. And let’s not talk about political or geopolitical news. A misinterpreted statement, a bad tweet... and it’s linked. Sometimes a phrase moves more than any economic data.

If you are only looking for the most volatile pair to feel adrenaline, I warn you: you better go to the casino. You save yourself the analysis and frustration. Unchecked volatility leaves you out in two weeks. The key is to know when to operate, not how much it moves. You can earn a lot with small moves if your entry is accurate and your risk is well adjusted. You don't need fireworks to win.

I personally like to operate CAD during oil news. It’s not as violent as other pairs, but if you understand the correlation with crude oil, you can anticipate it quite well. People underestimate the impact of oil on forex, but in pairs like USDCAD or CADJPY you notice it very much. You just need to know when to look and with what volume to enter.

What happens is that a lot of people go into business without having done or backtesting. They think watching two videos on YouTube is clear, and then they cry because the market tricked them. It’s not that the market fooled you, it’s that you entered without preparation. If you’re going to operate news, minimally test with historical data and have a clear system. If not, get ready to pay the account to the broker.

There are some who in events like NFP inflate the spread, slip you in and run you late. And then they say it’s not their fault. That’s why I always recommend operating this kind of thing in real accounts only after seeing how your broker behaves at those times with demo. It can save you a lot of dislikes.

Exotic couples also react very strongly to news, but no one mentions it. USDTRY, USDZAR or USDMXN move like crazy with any U.S. data and on top they have high spread. I operated for a while but I got tired of the extra risk. Unless you have a very refined system and good execution, it is easier to lose than to win. Better to stay with the known.

In the end, the biggest movement is caused by fear. More than the news itself, it is the surprise that makes the candles explode. If the market already expects something, it does not move. But if it is surprised, there is a reaction there. That is why it is so important to look at the forecasts, the consensus and the general feeling. It is not enough to know what is going to be published, it is necessary to know if what is published surprises or confirms what is expected.

I think the worst mistake is to get right into the second that the news comes out. It’s like standing in front of a stampede and hoping to get out unharmed. Better to wait for the dust to settle. One inning two or three minutes later, with the clearest direction and the normalized spread, it’s usually safer and more profitable. It’s not that exciting, but we’re not here for the excitement.

I have specialized in employment news and monetary policy. They are the ones that move the most and have a more predictable impact on price behavior. Of course, not always right, but with a good strategy based on post-news reaction patterns, you can operate quite well. Yes, discipline above all.

Once I operated without knowing that there was NFP. I saw a giant candle in EURUSD, I got scared, I closed manually with loss and then I knew what had happened. I look at the calendar every morning. It’s absurd not to. It’s like driving without looking at the GPS and then surprised you because you entered a closed street. If you want to operate seriously, you have to know when there are possible earthquakes.