Interest rate expectations lead
Currency direction typically tracks the expected path of policy rates rather than the current rate. Forward-looking market pricing is therefore more informative than the last decision.
Surprise, not level, moves price
An inflation print above consensus can move a currency even if the absolute figure is falling. Consensus expectations are the reference point.
Frequently asked questions
Do I need fundamentals if I trade technically?
Even technically-driven traders benefit from knowing when high-impact releases are scheduled, since liquidity and spreads change around them.
PS
Pips School Editorial
The Pips School editorial team writes independent educational material on forex markets, broker selection and risk management.
Editorial principles
