Hello traders
Why is there a big spike in EURUSD at 10:30 EST ?
And a big movement in EURJPY at 10:30 EST ?
Someone please explain.
Thanks.
20 pips over a half hour is really hard to say definitively what caused it. It’s really not that big of a move in the first place. The only news at that time was a positive European consumer confidence report. Not really an actionable news announcement for the most part.
Go back to Wednesday and look at the real spike caused by the FOMC announcement, and compare.
Today’s movement falls more into the category of normal price swings.
Thanks Master Tang.
This movement is really small as compared to Wednesday’s.
But why did EURJPY moved down instead of positive European consumer confidence report?
JPY did this against all the pairs. I was with USDJPY at that time.It was pure price action in the case of USDJPY that bounced back for the resistance zone.
Eur/Gbp - you are right re Euro positive, it remained so. There was some Jpy buying resulting from the selling in Usd/Jpy at London Close, thus bringing eur/jpy down with it.
Friday was effectively the last day for many traders, so profit taking. (known as black eye Friday)
Fibre was initially affected because of the usd selling in Usd/Jpy
Usd/Jpy - some are saying that a price change against good news signals a trend reversal - meaning that the USD should have continued North on Friday as per the news, and that this down turn signals a trend reversal.
I’d be careful reading such into it, the ‘spikes’ you mention can happen at the month end re-balancing , 16.00 gmt being the key time.
If you want to get a bias for the direction of the flow, check out the S&P for the month - strong S&P often will mean a negative for USD (regardless of the news).
Some info here:
Q4-End Rebalancing signifies potential USD weakness
http://www.mta.org/eweb/docs/pdfs/10-apr-tamag/tamag-intraday.pdf
Thanks everybody.
EURUSD didnt had a start that traders were hoping of, might be a pullback…