What Makes the Market Move: News, Banks, and You

School Preschool01/01/2026

By Iriss LeeFounder & Editor1 January 20263 years trading forex. Writes every KoboFX guide and review. Full profile →

Risk warning: Prices can jump fast on news. This is education, not financial advice. Never trade news with money you cannot afford to lose.

Prices do not move by magic. Three forces push them: news, banks, and people.

Three arrows push one price line upward. News events cause sudden jumps, big banks move large volumes that bend the trend, and crowds of small traders add daily pressure. All three push the same line.

1. News and data

Big news moves the market:

Interest rates — when a central bank raises rates, that currency often rises.
Inflation and jobs data — strong data often lifts the currency.
Global news — war, oil prices, and politics can shake the market.

Oil prices and central-bank news can move exotic pairs quickly — for example USD/ZAR can jump 2% on news. Major pairs like EUR/USD often jump on US jobs data.

Do not chase the first spike. Spikes often reverse.

A trading day around US news. Morning builds positions, the dashed line at 1:30pm marks releases like jobs data that spike both ways, and the evening offers calmer structure after the dust settles.

2. Big banks and funds

Banks, funds, and companies trade huge sizes. When they buy or sell, price moves.

You cannot fight their flow. Learn to see it on the chart in Trends: Trading With the River, Not Against It.

3. People — fear and greed

Traders are human. Fear makes them sell. Greed makes them buy. This creates trends and panics.

If many traders in London and New York buy at the same time, price rises. When they fear and sell, price falls.

What this means for you

Check the news calendar before you trade. Avoid trading right before big news if you are new.
Trade during busy hours: London 8am–5pm WAT and New York 1pm–10pm WAT — moves are clearer then. See Trading Sessions and WAT.
Use a stop loss every time. See Stop Loss: Your Automatic Brake Pedal.

For safety checks before you risk money, see The Complete Guide to Forex Safety (2026).

Bottom line: Check news at 1:30pm WAT, avoid trading before spikes and keep stop, or you risk a jump stopping you out. Related guides: Forex Safety and Avoiding Scams.