One speech from the **Federal Reserve Chairman** can destroy your setup in seconds. **Fundamental Analysis** drives the trend. **Technical Analysis** helps you find the entry.
In 2025, markets are driven by one main question: *"What will the **Central Banks** do next?"* This guide will teach you how to read the economic calendar and stop getting caught on the wrong side of a news spike.
SVG 1: Central Bank Sentiment (Hawkish vs. Dovish Policy)
1. Key Economic Drivers (The Why)
**Interest Rates** are the most important factor in Forex. Money flows to where it earns the highest return.
- **Interest Rates:** If the Fed raises rates, the **USD** strengthens (Gold usually falls). If the Fed cuts rates, the **USD** weakens (Gold usually flies).
- **Inflation (CPI):** High CPI (Hot Inflation) leads the Fed to raise rates → **USD UP, Gold DOWN.**
- **Employment (NFP):** Strong NFP (Non-Farm Payrolls) means the economy is strong → Fed can keep rates high → **Bullish for USD.**
2. Understanding "Priced In" (Avoiding the Trap)
This concept dictates why news can be good, but price still drops.
**Answer:** The market already expected the news (**Priced In**). Traders buy *before* the news. When the news comes out, they sell to take profit. This is called **"Buy the Rumor, Sell the Fact."**
3. Geopolitics & Safe Havens (Risk Management)
**Geopolitics** creates sudden volatility spikes.
- **Conflict:** Investors dump risky assets (Stocks, Crypto) and buy **Safe Havens**: Gold (XAUUSD), Swiss Franc (CHF), and Japanese Yen (JPY).
- **Risk Management Rule:** Never trade during the immediate, chaotic reaction to high-impact geopolitical news.
SVG 2: News Trading Cheat Sheet (USD and Gold Impact)
4. Strategy: The "Aftershock" (Managing News Risk)
Trading the immediate news spike is **dangerous** (wide spreads, high slippage). **Strategy B: The "Aftershock"** is the recommended method for risk control.
SVG 3: The Aftershock Strategy (Risk Control)
**Process:** Wait for the news to release. Let the initial chaos happen for 15 minutes. Once the market picks a direction, wait for a **Retest** of the breakout level, then enter. This is much safer and minimizes slippage risk.
Final Thoughts
**Fundamental analysis** provides the **context** for your trades. If the Technicals say "Buy" but the Fundamentals say "Sell" — **Stay Out.**
The best trades happen when Technicals and Fundamentals align perfectly. Monitor the market fundamentals via the Realtime Market Dashboard.
