} ‘Often, currency pairs, not to mention entire market indices, move on the strength or weakness of economic news and data releases that are either forthcoming or being revised.’
‘If it’s a major data release (e.g. growth) this can already be factored in to the exchange rate(s) in advance, but they don’t always affect how traders/ speculators/ arbitrageurs see things (i.e. market expectations).’ {
} ‘Some markets or currency pairs may be even more event driven than others…’
‘When specific economic events and statistical data can drive markets higher or lower, apparently, what about non-specific events, e.g. international sports fixtures, natural disasters, or mini-apocalypses?’ {
} ‘Guess the point here is that when Brazil is gearing up toward hosting the World Cup next year and the Olympics in 2016, it will almost certainly affect the demand for the BRL…’
‘Or, … how might the chances of a Swiss dude winning Wimbledon (surely, not again) affect market sentiment about the CHF?’ {
} ‘…With the Bank of International Settlements (BIS) stating that central banks have done their bit and that now, governments must do more to improve economic conditions, how might multibillion currency swap agreements affect the CNY over a three year time period, despite fears over China’s credit and liquidity?’
‘Does another natural disaster in India affect a Mumbai trader’s position on the INR against other currencies? Does Russia’s continued armed support of tyrannical regimes in the near East affect Barney and Betty Ruble?’ {
} ‘What might happen to the international perception of the USD when the IRR currency is apparently getting sanctioned, thereby making it weaker and more volatile - does it represent a threat to regional economic stability, or an opportunity for those banksters to make more money?’
‘Those are a few contemporary examples.’ {
} ‘Only relying on economic fundamentals and technical analysis may lead to prolonged staring at screens and price / market movements, thereby ignoring many of the underlying or prevailing structural macroeconomic or political conditions that may be affecting those numbers, outside of the: "no matter what is goin’ on, the price reflects all the available info, because all available info is discounted into the price…" greed and fear kind of argument.’
‘Discuss.’ {
} ‘OK. Then you’re off to watch some tennis?’