The Inflation Print

What happened

On 10 November 2022 US inflation came in below expectations. In seconds the dollar collapsed and EUR/USD posted one of its biggest daily gains in years.

A tenth of a percent in a single data point reversed weeks of trend.

How to survive a day like this

• Check the economic calendar and the news before you trade: these days were announced or brewing for hours.
• Reduce your risk: on extreme days, 0.5% per trade is plenty, because stops can slip far beyond where you placed them.
• Do not fight the first move. The first candles of a shock set the direction for the rest of the session more often than not.