Quote:
Originally Posted by bogusrogus
This is always the hardest part about trading. You really have to think where the market is positioned ahead of such news and then act accordingly. Think about who might be left to buy or sell on pre positions. It is only the truely suprising moves that seem to have legs. This inflation news was pretty ho hum and largely discounted.
As an example, last GDP report out of Aussie was expected to be .5% - it came in at a real suprise of 1.0% - Aussie gapped as shorts covered then collected for a bit as there were no more short term traders left to buy, then moved higher as the brits woke up to the news and took positions. That kind of suprise can lead to a better long term move than something that is a little more expected. Does that make any sense?
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Hey. So your saying that if its already predictable, we have probably already seen in factored in so thats why there is not much change because they already knew about it or expected that? Also, whoever is left to receive the information (shock) will move the market and kind of cause a domino effect? But as I said in my initial post, I still do not understand why stronger inidications toward the dollar would push it weaker against other currencies? Sorry if I am not making since as to what I'm asking, I'm trying to word it as best as I can think of it.