what info to have on a FX watchlist

[Pharaoh]

Central bankers are on my watchlist. I think I'm going to plant a chip in the head of every central banker - should make it easier to keep tabs on possible surprise announcements.

 

[iMusingKiMi]

Oddly enough I've always been told that exactly EUR/USD is highly influenced by big players on the market. It made sense to me, due to the random odd spikes we see from time to time, not to mention that statistically speaking this is the most traded pair on the market, which means that there would be plenty of said major players who will be affecting its behaviour. That's my subjective opinion, at least.

I believe it is not as said that highly influenced by big players on the market. It is plainly because this pairing are highly weighted in Dollar Index. Only Euro is approximately 58.2% weighted. Therefore, it made clearly this is why Euro always opposite moves with the Dollar.

 

[dianajs]

Yes, that is correct. EUR/USD is the most traded pair not just by speculators, but by funds, banks, corporations, governments. And that creates the biggest mass of transaction money in the world, making it difficult to manipulate the pair in the long term, because you need to have large amount of money to move the pair in your desired direction, whereas in less traded pairs you don't need large amount as there aren't many market participants at one point in time.

To be honest I am more concerned with the occasional random spikes and whipsaws I've observed in this pair, rather than big players manipulating it in the long term.

 

[ForexVerified]

To be honest I am more concerned with the occasional random spikes and whipsaws I've observed in this pair, rather than big players manipulating it in the long term.

Well, unfortunately (sometimes fortunately if you're on the right side) spikes are part of Forex and no pair is immune to it.

 

[EuroTrader]

Well, unfortunately (sometimes fortunately if you're on the right side) spikes are part of Forex and no pair is immune to it.

If we are careful in our trading then we can easily avoid the spike in our trades and also that will let us earn a good income in the trading easily

 

[dianajs]

Well, unfortunately (sometimes fortunately if you're on the right side) spikes are part of Forex and no pair is immune to it.

I absolutely agree. It's just that spikes seem to be more prevalent in some pairs than others. For example, I've been watching and trading USD/CAD for a while now and in my experience so far the pair moves pretty smoothly, the aforementioned random spikes seem to be happening very rarely or almost never.

 

[ForexVerified]

I absolutely agree. It's just that spikes seem to be more prevalent in some pairs than others. For example, I've been watching and trading USD/CAD for a while now and in my experience so far the pair moves pretty smoothly, the aforementioned random spikes seem to be happening very rarely or almost never.

True, USD/CAD is a good pair to trade. Wild spikes usually happen to JPY pairs and most crosses.

 

[dianajs]

True, USD/CAD is a good pair to trade. Wild spikes usually happen to JPY pairs and most crosses.

I agree. USD/JPY especially is prone to long periods of consolidation, which I find very frustrating because I prefer trading trend than trading range.
What is your opinion on EUR/GBP, by the way? I'm asking because it seems like a pair that also moves smoothly, even if it's an EUR pair.

 

[EuroTrader]

I agree. USD/JPY especially is prone to long periods of consolidation, which I find very frustrating because I prefer trading trend than trading range.
What is your opinion on EUR/GBP, by the way? I'm asking because it seems like a pair that also moves smoothly, even if it's an EUR pair.

I have been trading in the USDJPY and suffered some losses and this is also one of the reason why i prefer to stay away from this pair

 

[ForexVerified]

I agree. USD/JPY especially is prone to long periods of consolidation, which I find very frustrating because I prefer trading trend than trading range.
What is your opinion on EUR/GBP, by the way? I'm asking because it seems like a pair that also moves smoothly, even if it's an EUR pair.

I usually avoid EUR crosses, and especially EUR/GBP. GBP/USD by itself is difficult to trade, let alone combined with EUR.