As with all major economic releases there could be significant price volatility with this announcement.  Currency spreads will typically widen just before the release and will remain wide for a few minutes after.  If the announcement is a shock to the consensus estimate, the price of the currency pair could gap significantly.  For example, the price on the EUR/USD trading at 1.2820 - 1.2822 just before release could gap up 60 pips to 1.2880 - 1.2882, without any prices available between the price of 1.2820 and 1.2882.  A Buy Stop placed before the announcement at 1.2830 would turn into a Market Order and would be filled at the prevailing price 1.2882.  The same would be true with a Sell Stop. Approximately four years ago we saw a gap of approximately 200 pips on the GBP/USD on a Non-Farm Payroll announcement.  While this is an extreme example, this is what is possible with trading during economic announcements.  Basically, plan on the spreads widening and if you are trading with a Buy or a Sell Stop entry order, do not anticipate being filled at your entry price. You will be filled at the prevailing market price after the release, and this market price could be significantly different from your desired price of your entry order.

In volatile or fast moving markets, such as news trading events, it is imperative to be completely focused and care about how much margin you have to support the fluctuations that may result against you and possibly margin call your account.

Certain news releases consistently move 30 to 50 pips or more in a predictable direction, but not in all cases. The following strategies may be helpful. First, news releases (Category I), which come directly from government agencies and other research departments that study and monitor economic trends, consistently move the market when released. You may exit the market before these news releases.

The first category of releases consistently results in strong moves, be careful when activating the EA within these events.  This may result in peaks that can affect your margin as previously discussed. These numbers can change from time to time as market trends shift.

The second category is comprised of releases that can move the market and are good to watch. However, the like hood of a trade is lower than those releases in the first category.

Use our news indicator to keep track of the news releases and the effect on the market, we suggest to be careful in having the EA running during events with high impact on the market, and we strongly suggest to have the enough margin to trade during such events or exit the market.  Alternatively simply trade during low volatility market conditions.

There are some trading pairs with low volatility. Furthermore, some USD pairs do not move a lot during Asia session. We will be mailing some pairs settings for our EA.