Well, first of all - those events are hardly significant to move the currency markets. There's a reason why those events are colored yellow/orange. The 'red' ones are important - but not all of them either. The GBP/USD can easily move 300-400 pips when a significant report has been released. Remember, it's all about market 'expectations' rather than the actual news. If the markets are expecting a -5% growth rate, and that report comes out at -5.1% - GBP won't move much - maybe by 10-20 pips at the most.
Since the last 2 years the forex market has been very temperamental - sometimes they rely on equities, sometimes they don't. When global stocks fall - the US$ rallies and so on.
Now look at the Non Farm Payroll report which occurred on Friday. I've seen this pattern a few times before - it was a bad report.. and the US$ actually went up (short term) *gasp* Why is this? Short term, traders anticipate that this bad news will cause the stock market to collapse - so there's a flight to US dollars - this is only short term though. Additionally, the increase in unemployment caused the US interest rate futures to shoot up (increased possibility of a rate hike)
An hour later however, you'll see that the USD started dropping (like it should have in the first place) and EUR/GBP climbing up. I always stay out of the NFP for the first 15 minutes or so - to gauge the market direction. Especially in the current economic environment.
3-4 years ago, it was very simple. Bad job reports? USD sank for an hour non-stop - easy trades. Not so anymore.
Check out the Bank of England's inflation report today (King is going to give a speech) Depending on what he says, GBP has the potential to move hundreds of pips. Good luck!
The infamous Music_Producer! Thanks for taking the time to respond to my question. Still making my way through this thread - up to about page 40 or so.
Appreciate your insight. I'll keep gaining knowledge from here and abroad and hopefully wont bug you with too many elementary styled questions.
From your comments and previous posts (dating back to '06
Also as I'm only partially way through the thread, has your strategy/trading style deviated too much from a year or two years ago? Obviously you touched on the volatility and unreliability of the market in recent times.
Thanks again, I actually feel like I've made contact with a celebrity of sorts!