The rate differential
A currency pair reflects two economies. Relative inflation, growth and policy expectations often matter more than any single domestic headline.
Risk for traders
Volatility creates opportunity and faster losses. Position size, liquidity and a defined invalidation point are essential.
The calendar is part of the plan
Know when major releases are due and account for wider spreads and abrupt moves around the publication time.
Editorial note
This article is for information only. Consider your own circumstances and risk before making a financial decision.