Quote:
Originally Posted by broberson
This has happened to me over and over again. I’ll see a positive report come out and theoretically that country’s currency is supposed to move higher with the report, but instead the market actually brings the currency down. Can anyone explain this? Is there something I’m missing?
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I know
.This happened to me on Jan 19,2006 when the UK Retails Sales came in 2Xs higher than the consensus and the Cable tanked. Here's an explanation from the guys over at Dailyfx.com. May shed some light on how the large playas throw down
In retrospect the candle the day before was a hanging man and the stochastic was about 79.8. If I had stuck to the candles I would have taken profits too. Go figure.
UK Retail Sales (December)
Actual: 1.1%
Expected: 0.5%
Previous: 0.2%%
How Did the Markets React?
UK Retail Sales handily beat expectations printing at 1.1% versus 0.5% forecast, but almost all the markets reacted negatively to the figure as the good news was well anticipated and profit taking overwhelmed the fundamentals. Bonds rose, the pound fell and equities corrected mildly. The health of the UK consumer is well established, but markets bid up most of the instruments in days prior to the release and traders used today’s results to lock in gains made this week.