Economic events move the markets and create great trading opportunities. But there are specific events that traders should avoid.

In this article, we’ll go over the “Big 3” news events and why it’s best to avoid trading them.

What Are Big 3 News Events?

We refer to the three most volatile economic news events as the “Big 3 news events”. They are all high-impact (red) events from the economic calendar.

Non-Farm Payroll (NFP)

NFP is one of the three most volatile events in the economic calendar.

Released by the U.S. Bureau of Labor Statistics on the first Friday of each month at 8:30 AM EST, NFP is a monthly report showing how many jobs were added or lost in the US economy, excluding farm work, government, and non-profits.

During NFP, 50-100 pip movements in 1-2 minutes are a frequent event. For comparison, EURUSD typically moves 2-4 pips on a 1-minute and 5-minute timeframe with each price swing.

In February 2025, the unemployment rate rose to 4.1% as the U.S. economy only added 151,000 jobs. As a result, the EURUSD experienced its largest weekly rise since the financial crisis.

Federal Reserve Interest Rate Decisions (FOMC Meetings)

The Federal Reserve meets 8 times per year, approximately every six weeks, to decide whether to raise, cut, or maintain US interest rates.

These announcements are part of the 3 most volatile events from the economic calendar, as higher rates strengthen the dollar by attracting foreign investment, while cuts weaken it.

Traders also closely watch the FOMC statement and press conference for hints about future policy direction.

Inflation Data – Consumer Price Index (CPI)

CPI measures monthly changes in the cost of goods and services, making it a key indicator of inflation.

The FED’s main goal is price stability, and rising inflation data (above expectations) often triggers USD strength as traders price in potential interest rate hikes to combat rising inflation.

Weak CPI, on the other hand, can weaken the USD since the FED is inclined to either keep interest rates the same, or start lowering them.

In January 2023, the CPI reading from the USA was 7.5% higher than expected. This led to a rapid sell-off in the USD, and the USDJPY currency fell over 50 pips shortly after the news event.

How to Trade Big 3 News Events?

The short answer is: you shouldn’t.

You should only look to trade after the Big 3 news release, not before or during. Because of their insanely high historical volatility, all markets will experience whipsaw chart movements and very increased slippage.

This means that in case you are wrong, and the probability of that is at best 50%, price will move far beyond your intended Stop Loss, and you will lose far more than the amount you intended as risk for your trade.

It’s not uncommon for traders to lose 3-4x more than what they intended with their Stop Loss because of the high increase in slippage during these events.

Many traders even compare trading the Big 3 news events to gambling.

Big 3 News Events in Prop Firms

As we discussed in our dedicated prop firm guide here, most prop firms will have some sort of restrictions around news trading.

In most cases, it applies only to the funded phase, but some prop firms enforce it during their evaluation stages as well.

This means that you’re not allowed to open or close trades in a 10-minute window, surrounding a high-impact news event: 5 minutes before and 5 minutes after it.

You should still avoid the Big 3 news events, in case you’re allowed to trade high-impact news events in your prop firm.

Even if your prop firm allows trading around news, the risks of slippage, spreads, and unpredictability aren’t worth it. The safest approach is to sit out the Big 3 and trade after volatility settles.

If you’re interested in learning more about the different news events in the economic calendar, we cover everything in-depth here.

Until then, remember one thing: stay away from trading Big 3 news events.

FAQs

• What are the Big 3 news events in Forex trading?

The Big 3 news events include Non-Farm Payrolls (NFP), Federal Reserve Interest Rate Decisions (FOMC), and Consumer Price Index (CPI). They are the most volatile U.S. economic events on the calendar.

• Why should traders avoid trading the Big 3 news events?

Traders should avoid trading these events because of extreme volatility, wider spreads, increased slippage, and unpredictable price movements.

All of this makes it easy to lose far more than your intended risk.

• Can you trade after the Big 3 events?

Yes. Many traders wait for the initial volatility to settle and then trade the follow-through move that forms after the high-impact news event is released.

• Do prop firms allow trading during Big 3 news events?

Many prop firms restrict trading during high-impact news releases like the Big 3. Always check your firm’s rules before placing any trades.