So it was bad news for the usa today. less jobs added and a slightly higher unemployment rate. I was just wondering with the EUR/USD, it rose very quickly then went lower for quite a while why is this? is it because people buy the euro because now its worth more against the dollar then sell euros immediately after?
There are quite a few reasons why that happens. First thing that comes to mind is people only trading the report. Since it was worse than expected there is heavy buying. Then the people that were just scalping the report are selling there positions to pocket there cash and hit the bar for the weekend.
Another strange NFP where unemployment did not shift lower, job figures were worse than
the previous round AND expected, with only a 0.1% increase in earnings providing some
respite from a pretty lacklustre set of figures…
US equities plunged lower (where they may usually have gone higher, as
a bad employment figure forecasts a more dovish Fed/FOMC in terms of
more rate hikes);
US Dollar did not sink but actually flashed down/up/down to remain stationary;
Majors sank lower after an initial move higher, instead of the reverse…
All this within half an hour from the news release, so after the initial volatile moves…
This is why one should never trade the news
Indeed - exactly so.
And anyway, who needs it on a Friday afternoon, with all these UK election-results and analysis to watch, today?