I'm not Pip Dog but I maybe can respond. Viewing what's happening with global stock markets can give you an indication of whether markets are in risk appetite or risk aversion mode. If they are up, it's appetite; if down, aversion.
Risk appetite=USD weakness. Risk aversion=USD strength.
So, for today, with major indices down at the time of this UK news (risk aversion), the "default" mindset would have been to look for opportunities to go long the USD. So short GU (which is long USD) would have been the favored position to be in. And per the price action at news, this is what played out obviously. Historically a +0.3 deviation on CPI sends GU up 50-70 pips, but today it only blipped up 30 pips, then plummeted down below pre-release.
Markets you can watch are FTSE, DAX, S&P 500 futures, ASX 200 (Aussie index), and Nikkei. A lot of demo MT4 platforms have those indices, so download like an FxPro demo and you can view them that way. Or, just use Yahoo finance and input the correct symbols for those indices and track them that way (you'll have to look up what the symbols are).
Hope that helps...
Markets you can watch are FTSE, DAX, S&P 500 futures, ASX 200 (Aussie index), and Nikkei. A lot of demo MT4 platforms have those indices, so download like an FxPro demo and you can view them that way. Or, just use Yahoo finance and input the correct symbols for those indices and track them that way (you'll have to look up what the symbols are).
Hope that helps...
I really did help, once again, thank you for such a clear and informative explanation! I followed your advice and added those mentioned stocks to yahoo finance. Here is the snapshot of my modified yahoo finance. I did not delete 2 default ones: dow and nasdaq..but do we really need them for this purpose? Also the asx 200, there are so many different asx's..do you think this is the correct one (OZR.AX)?
And a very basic confirmation: when (almost) all are (clearly) down or at least, let's say, red, it means that at that moment risk aversion is on, and we should only buy USD, right? ..and that's for all USD-pairs, or is it mainly valid for gbpusd, audusd, nzdusd and eurusd..not usdjpy nor usdchf, due to last two being also a "safe haven" ones?
PipDog, what stocks do you usually look at?
Excellent explanation Boko! You may want to copy your answer and paste it in a Word file...makes for a good place to copy/paste from later. Based upon my experience, you will be answering this question again and again and again and....
PipDog, what stocks do you usually look at?
How would you define a flat market and a strong risk aversion/appetite mode? Like DOW +50 points is that flat enough? If its +100 points is that risk appetite already? Thanks for sharing. Boko whats your take on this as well?