Trading Amid Turbulence: Octa Broker's Guide to Navigating High-Volatility News Cycles

The Historical Impact of News on Markets Market-shocking news is nothing new. Arguably, one of the most infamous examples occurred on 15 January 2015, when the Swiss National Bank unexpectedly eliminated its currency ceiling against the euro. Within seconds, the EUR/CHF pair plummeted by nearly 30%^[2], wiping billions from the forex markets and sending shockwaves around global financial institutions.

This historical context matters. It reminds that both scheduled and unscheduled news can have outsized impacts on market pricing, especially when market participants are caught off guard.

Scheduled vs. Unscheduled News Events Scheduled news events, by their nature, offer predictability. Reports such as the Consumer Price Index (CPI), labour market data, PMIs, and central bank meetings are calendar fixtures. Their importance, however, varies depending on the issuing country.

The United States is a leader in terms of influence. As the issuer of the global reserve currency, U.S. economic data has global ramifications. An example is the U.S. CPI reading, which not only shifts USD pairs but, often, equity indexes and commodities. The Bureau of Labor Statistics releases these reports^[3] monthly.

PMI reports^[4], often early indicators of economic health, are published by S&P Global on a harmonised schedule across major economies. Central bank meeting dates, while known in advance, still generate high volatility due to surprise rate decisions or hawkish/dovish commentary. Federal Reserve (Fed) meetings can be tracked here^[5], and the European Central Bank’s (ECB) schedule is also available on the institution’s website^[6].

In contrast, unscheduled news events are unpredictable and often far more dramatic in terms of market impact. These include geopolitical tensions, unexpected policy announcements, or political rhetoric. On 1 February 2025, President Trump's sudden announcement^[7] of comprehensive tariffs on Canadian imports pushed USD/CAD to record multi-decade highs.

The Surge of Unscheduled News in Recent Times April 2025 exemplified how chaotic unscheduled news can become. In early April, shifting U.S. tariff policies caused sharp moves in equity markets^[8]. Major indices dropped into correction territory but later recovered after revised statements. Then, in early May, mixed job data^[9] added to the uncertainty, offering little clarity on what to expect next.

Current News Events Influencing the Markets Several unscheduled narratives are currently steering sentiment:

• Trade negotiations between the U.S. and China are ongoing, with some progress achieved, but uncertainty continues to linger as to whether an acceptable and long-lasting agreement can be achieved within a 90-day deadline.
• President Trump’s public critique of Fed Chair Jerome Powell continues to inject uncertainty into the monetary policy outlook. ^[10]
• Meanwhile, the U.S. remains involved—albeit hesitantly—in peace talks between Ukraine and Russia. ^[11]
• Trade discussions with Japan have also become strained, with little progress reported thus far. ^[12]

• Use smaller position sizes to limit exposure.
• Apply tighter stop-loss orders to protect against sudden swings.
• Opt for short-term trades to reduce the risk of overnight event surprises.
• Avoid overly volatile assets unless accompanied by clear signals or hedges.

Scheduled economic releases still matter, but unscheduled news—particularly in the current politically charged global climate—has emerged as the primary driver of market sentiment. The line between economic and political news continues to blur, and with it, the predictability of price action. For traders, this means one thing above all: stay flexible, stay informed, and adjust strategies to match the new reality.

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References

1. ^{^} Media OutReach Newswire (www.media-outreach.com)
2. ^{^} plummeted by nearly 30% (www.bbc.com)
3. ^{^} reports (www.bls.gov)
4. ^{^} PMI reports (www.pmi.spglobal.com)
5. ^{^} here (www.federalreserve.gov)
6. ^{^} website (www.ecb.europa.eu)
7. ^{^} sudden announcement (www.reuters.com)
8. ^{^} sharp moves in equity markets (www.nytimes.com)
9. ^{^} mixed job data (www.reuters.com)
10. ^{^} public critique (www.reuters.com)
11. ^{^} albeit hesitantly (www.euronews.com)
12. ^{^} little progress (www.reuters.com)