There are always several key nodes in the monthly trading calendar that make people "tighten", such as the Federal Reserve's interest rate resolution, the announcement of the euro zone GDP, and the minutes of the Bank of England meeting...

For traders, these are not just boring data, but the prelude to the storm that can truly leverage the market.

So, why is GDP and interest rate resolution so important? How can we use these macro data to improve trading performance? In this article, EagleTrader will dismantle this problem that every trader cannot avoid.

What is GDP?

GDP, the full name is GDP. In the most blunt words, it is the entire economic value created by a country within a certain period of time.

For foreign exchange trading, the quality of GDP directly affects the market's confidence in the country's currency:

GDP is higher than expected → The market expects good economic growth, capital inflows → The local currency usually appreciates

GDP is lower than expected → The economic momentum is insufficient, capital confidence weakens → The local currency is under pressure and falls

This means: GDP is not only a set of numbers, but also a signal source for long-short games.

For example, if the quarterly growth rate of US GDP exceeds market expectations, it will usually boost the US dollar index, putting pressure on non-US currencies such as the euro and the pound.

What is the impact of interest rate resolutions?

The adjustment of interest rates is the main tool for central banks to regulate the economy and inflation. For foreign exchange traders, interest rates are like the "pricing power" of currency.

Enterprise rate increase: means that the country's assets have higher returns, attracting capital inflows → Local currency rises

Enterprise rate decreases: It means that the cost of capital is reduced, which may trigger capital outflows → Local currency fall

More importantly - the market is not just looking at "raising interest rates or not", but looking at "whether it exceeds expectations". Therefore, even if interest rates remain unchanged, the market will immediately respond as long as the central bank statement releases a signal of "the future is eagle/dove". This process of "interpreting expectations" is the key to the winning details of senior traders.

How traders deal with these data markets

We observed a phenomenon in the EagleTrader exam: traders who pass the assessment and make stable profits in the long term have one thing in common: they are very restrained and systematic in handling "data events".

They will not bet on the direction, but do four things well:

Prove two sets of strategic plans before and after the data in advance (if it exceeds expectations, if it is low)

Control positions and narrow the stop loss tolerance zone to quickly determine whether market sentiment has reversed

Use "expectation difference + market structure" to capture short-term trading opportunities

You will find that there is a data market module in their trading system. It is not a gambling, but a replicable, quantifiable, and executable behavior pattern. This also explains why many traders perform well in daily market conditions and are prone to losing control once they encounter major data shocks.

EagleTrader prohibits trading in the first 2 minutes of major data?

For contracted EagleTrader traders, we clearly stipulate that trading is prohibited within 2 minutes before the high-impact data is released. This is not "depriving opportunities", but based on respect for the real market mechanism and protection of traders:

In the last two minutes before the data is released, the market often enters a "liquidity vacuum" state;

The spread is widening, the slippage is severe, the transaction is delayed, and false breakthroughs occur frequently;

Many traders place orders at this stage, often not in the execution system, but "guess the direction" driven by emotions.

A mature trading system should not be built on this irrational game. Therefore, EagleTrader will sort out the major data time for one week in advance every week, and send reminders through emails to allow traders to plan and make arrangements in advance. Really do not bet on time or rob the reaction, but use the system to meet risks.

At EagleTrader, you can gradually form a professional and systematic trading method, leave your emotions and impulses behind, truly break through yourself, and become an efficient professional trader!