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Relationship between News and decisions

Discussion in 'General Forex Talk' started by Glenn Pozzerle, Jan 2, 2009.

  1. Glenn Pozzerle

    Glenn Pozzerle Recruit

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    Hello folks. I'm curious. Being new to this Forex stuff, what is the significance between the financial news and the decision to short or go long on any particular currency pair? For example:

    "Looks like both pieces of news missed our triggers. The Consumer Confidence number came very close to our trigger, but the market chose to ignore it. Tomorrow we're getting:

    US Weekly Initial Jobless Claims expected at 575K. If it comes out at 610K or higher, I'd short EUR/JPY looking for 40 pips. If it comes out at 539K or lower, I'd go long EUR/JPY looking for 40 pips"

    How does Jobless Claims relate to EUR/JPY? Why do you want to short this particular pair when the news is bad, or go long when the news is good? Why Japanese Yen? How does Japan figure into this? Thank you for answering. Glenn
     

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