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Chapter 21, Part VII. Market Response on News. - Q&A

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Dec 22, 2011.

  1. Administrator

    Administrator Just Administrator :-)

    Sep 24, 2007
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    Please use this thread for questions, answers, and comments on this lesson.
  2. Marky$

    Marky$ Private, 1st Class

    May 10, 2012
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    Hi Commander in pips,

    I've observed some curious reactions of EURUSD for US data realeses.
    1) bad data from US -> low risk appetite -> USD appreciated.
    2) good data from US-> US economy strongest -> USD appreciated.
    3) bad data from EU-> EU economy weaker -> USD appreciated.
    How to understand it? Could you give me some clarification how to deal with it?
    Should we have to get good data from both economies for EUR appreciation?
  3. Sive Morten

    Sive Morten Special Consultant to the FPA

    Aug 28, 2009
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    Hi Marky
    that's as in soccer - any team plays football, but Germany always wins :)
    The same as with USD. When there are problems in US, dollar wins since it is treated as safe haven.
    When US economy grows - dollar wins by this reason. That is because USD is over 60% of world reserve currency. USD is always better in good times - since it is better to invest in most powerful currency and it is a safe haven in bad times.
    The same you can see in US Treasuries. IT seems that yield should rise, since US was downgraded, they have problem with national debt, etc., but not - yields are at lowest levels of all times. Why? Because they are safe haven...
    Still, It's better not to keep it too simple as you trying to do.

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