Hi
I’m very new to forex trading and digesting as much info as I can. babypips is a great resource and thanks to everyone.
I have a question on the Non Farms from last friday. the results proved better than expected, yet the US dollar weakened straight after (the GBP:USD shot up straight after the result) … I would have expected the reverse … does anyone have a logical explanation?
Thanks
If I remember right it’s because for some reason, it triggers Bond trading, which causes the reverse effect to what you would normally expect, this has been going on for over a year, and to me it just goes to show how tricky fundamental based trading is, it’s a minefield
1 explanation is that unemployment increased so the report is not as good as you might think. However, it’s not as simple as good report = stronger USD as there are many factors like the stock market involved, commercial traders’ long term positions, etc.