I would appreciate if someone can help me understand why this particular news influences the dollar index to spike dramatically the way it does since its release. And why is it a bullish spike, why would this type of news not instead take strong a bearish turn?
Is this generally what happens to DXY when there is news involving the U.S military attacking other countries?
It’s easy to reflect back, but maybe think in terms of this morning, early UK time around 5.00am I saw the news of missile strike.
USDX had little response, the place to look first is Gold - buy Gold in times of distress, then look to Jpy, same thing, specifically Usd/Jpy.
(think of the old story of USD vs Gold)
Then do not forget this is the first Friday of the month, so back again to Usd/Jpy - use say 15min charts.
Then also take on board that possibly more robots on Usd/Jpy than USDX so look to where the buys were programmed.
Perhaps should clarify that most robots are programmed to buy Jpy and Gold on geopolitical bad news, the reasoning is a long story covered elsewhere.
Should also clarify that today being the first Friday is also NFP day for the US, also covered elsewhere.
I was quite mystified too. First there’s a US missile strike against a Russian key ally, then a worse than expected NFPR. Gold was up after the missile strike news but it has levelled out, its not soaring away. While the stock market just ignored it all.
The strongest bull markets ignore bad news.
Nothing and everything makes sense when it comes to currency fluctuations: the question is, how does explaining something or anything, even the inexplicable, help you becoming a better trader?
the USD did drop on news of the bombing…and it dropped again on the release of the bad NFP numbers…however instead of dropping further after the NFP it rallied higher, and then spiked in the afternoon on no news…why did this happen i have no clue. On Friday morning when it was announced that a russian warship was heading toward the US ship that launched the missiles i thought things were escalating and expected the USD to drop further but I was wrong on that…