Today, financial markets no longer dancesolely to the rhythm of macroeconomic data releases. Instead, they often lurchor rally in response to an offhand remark from a political leader or an abruptpolicy tweet. Nowhere is this more evident than in recent weeks, whereheadlines—not spreadsheets—have dominated market momentum. Traditionalindicators like inflation figures or Purchasing Managers Indices (PMIs) stillcarry weight, but traders should also read between the headlines and act on thefly. Octa Broker provides examples of how news affects the market and whatevents are worth monitoring.

The HistoricalImpact of News on Markets

Market-shocking news is nothing new. Arguably,one of the most infamous examples occurred on 15 January 2015, when the SwissNational Bank unexpectedly eliminated its currency ceiling against the euro.Within seconds, the EUR/CHF pair plummetedby nearly 30%, wiping billions from the forex markets and sendingshockwaves around global financial institutions.

This historical context matters. Itreminds that both scheduled and unscheduled news can have outsized impacts onmarket 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), labourmarket data, PMIs, and central bank meetings are calendar fixtures. Theirimportance, however, varies depending on the issuing country.

The United States is a leader in terms ofinfluence. As the issuer of the global reserve currency, U.S. economic data hasglobal ramifications. An example is the U.S. CPI reading, which not only shiftsUSD pairs but, often, equity indexes and commodities. The Bureau of LaborStatistics releases these reportsmonthly.

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

In contrast, unscheduled news events areunpredictable and often far more dramatic in terms of market impact. Theseinclude geopolitical tensions, unexpected policy announcements, or politicalrhetoric. On 1 February 2025, President Trump's sudden announcement of comprehensive tariffson Canadian imports pushed USD/CAD to record multi-decade highs.

The Surge ofUnscheduled News in Recent Times

April 2025 exemplified how chaoticunscheduled news can become. In earlyApril, shifting U.S. tariff policies caused sharp moves in equity markets. Major indicesdropped into correction territory but later recovered after revised statements.Then, in early May, mixed job data added to the uncertainty,offering little clarity on what to expect next.

Current NewsEvents Influencing the Markets

Several unscheduled narratives arecurrently steering sentiment:

● Trade negotiations between theU.S. and China are ongoing, with some progress achieved, but uncertaintycontinues to linger as to whether an acceptable and long-lasting agreement canbe achieved within a 90-day deadline.

● President Trump’s public critique of Fed Chair Jerome Powellcontinues to inject uncertainty into the monetary policy outlook.

● Meanwhile, the U.S. remainsinvolved—albeit hesitantly—in peace talks betweenUkraine and Russia.

● Trade discussions with Japan havealso become strained, with little progress reported thus far.

Strategies forTraders During High-Volatility News Cycles

In this news-saturated environment,adaptability is key. Traders can navigate volatility with the followingstrategies:

● Use smaller position sizes tolimit exposure.

● Apply tighter stop-loss orders toprotect against sudden swings.

● Opt for short-term trades toreduce the risk of overnight event surprises.

● Avoid overly volatile assetsunless accompanied by clear signals or hedges.

Kar Yong Ang, a financial market analyst atOcta Broker, notes: ‘With news-driven andunexpected volatilities driving trading in our current setting, traders mustbecome more reactive and less anticipatory in their strategies. Do not try tofront-run and second-guess the outcome of this or that event. Instead, wait forthe dust to settle and then enter the market. Position sizing should reflectthe current volatility regime, ideally calculated through dynamic risk metricslike ATR (Average True Range). Most importantly, traders should maintain astructured news-monitoring routine and understand the second-order effects ofheadlines—for example, how a tariff announcement may ripple throughcommodities, currencies, and interest rate expectations simultaneously.’

About Octa

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

Compliancereminder: tradingContracts for Difference (CFDs) carries a high level of risk and may not besuitable for all investors. Emotional trading can increase this risk. Alwaystrade within your means and understand the risks involved.

Octa is an international broker that has been providing onlinetrading services worldwide since 2011. It offers commission-free access tofinancial markets and various services used by clients from 180 countries whohave opened more than 52 million trading accounts. To help its clients reachtheir investment goals, Octa offers free educational webinars, articles, andanalytical tools.

The company is involved in acomprehensive network of charitable and humanitarian initiatives, including theimprovement of educational infrastructure and short-notice relief projectssupporting local communities.

Since its foundation, Octa has wonmore than 100 awards, including the 'Most Reliable Broker Global 2024' awardfrom Global Forex Awards and the 'Best Mobile Trading Platform 2024' award fromGlobal Brand Magazine.