A good understanding of how the news really works and what effects it has on the market is valuable to a trader. Having a good connection to what is real and what it is emotional sentiment is critical to us as traders. Here is a discussion that took place in the Inner Circle Group at forexstrategysecrets.com.
[9:33:44 AM] ignacio C: http://www.cnbc.com/id/100934536
[9:34:14 AM] ignacio C: Interesting view over Asian Currencies; FYI
[9:45:35 AM] Jed Norwood: Thanks Ignacio!
[9:50:14 AM] Clark W: Good article Ignacio; However, contrary to the article, today’s Non-Farm Employment Change, Average Hourly Earnings m/m, Personal Income m/m and Factory Orders m/m all came in much lower than expected and the dollar took a big hit today dropping nearly ½% against the other major currencies and put a damper on any talk of tapering the QE.
[9:57:57 AM] ignacio C: Good point Clark but Unemployment Rate was better than Expected
[9:59:07 AM] ignacio C: What I don’t understand is the EURUSD near 1.33
[10:02:43 AM] Jed Norwood: Me to Ignacio. the EURUSD was looking perfect until the news went off.
[10:03:25 AM] Clark W: When the Dollar dropped the Euro rose in response. A double whammy on the EURUSD. See image.
[10:05:40 AM] ignacio C: Wow man, you are a Master (bow); Thank Clark
[10:08:45 AM] Jed Norwood: www.forexticket.com is a great tool I need to remember to refer to it more often. Thanks Clark for reminding me of the real affects the news has on each pair. Often times we can get caught up in what we think the market will do, rather than looking at the real issues at hand.