Is it just me or does the market just ignore news on announcements recently . If we had these nfp figures like this one last year the $ would loose 150 -200 pips. I noticed the past 4-5 months market is more into currency sentiment . We had some bad news this week and today and the $ just sold just keeps on increasing in value. Lost about 40 pips today because i assumed the the nfp was bad for the $ . Like they say the chart says it all .
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end of fundamental trades
- Thread starter watchdaride
- Start date
Quote from watchdaride:
Is it just me or does the market just ignore news on announcements recently . If we had these nfp figures like this one last year the $ would loose 150 -200 pips. I noticed the past 4-5 months market is more into currency sentiment . We had some bad news this week and today and the $ just sold just keeps on increasing in value. Lost about 40 pips today because i assumed the the nfp was bad for the $ . Like they say the chart says it all .
In the 4th quarter of 2004, dollar fell on better than expected nfp.
Fundamentals work in very short term, generally less than 5 minutes, called knee-jerk reaction, or will work in very long term, maybe several months or several years. Only the influence of knee-jerk reaction makes sense in margin trading, if you have the infrastructure guaranteeing you to grasp those short term chances.
After the knee-jerk reaction on fundamentals, the market comes back under control of traders' speculative desire and power.
Apparently, sentiment overruled TA and bad news. The greenback had full advantage over euro right now, and only yen could keep the greenback at bay. Well, when positive sentiment takes over, bad news doesn't feel that bad and good news feels better.
Apparently, despite NFP was below expectations, after all, look at the bright side, it still had a "plus" sign, and also, unemployment rate fell.
Cheers!
Apparently, despite NFP was below expectations, after all, look at the bright side, it still had a "plus" sign, and also, unemployment rate fell.
Cheers!
Oh, by the way, if France and Netherlands said yes last week, euro would've been at around 1.24-1.25 by now, as the markets would surely punish the greenback for bad payrolls number.
Didnt even look at the trade figure yesterday and made a killing . Just looked at price.