Hello, I’m a parttime forex trader. I’ve a question on Cad/usd pair. Despite having a low gdp of canada and more than expected rise in consumer sentiment of USA according to economic stat., why did Cad/Usd rose more than 70 pips on 01/07/20 wednesday 12 am after Us consumer board consumer survey was released. I really appreciate your help on this. Thank you…
Do you mean the USDCAD fall as shown at the right of my chart? I’m guessing it is to do with CAD following Oil after OPEC news.
Thank you very much. Kind a weak with fundamentals.
No worries. The Canadian Dollar is influenced quite a lot by the price of oil. If you get a chart for oil and compare USDCAD you will notice they are almost opposite to each other.
As you are a part time trader you’ll never fully understand or keep up to date with fundamental news.
I thought of making it full-time but Still want to give more time on learning and to figure out the best strategy that suits me. Struggling…
I partially agree with this-- trying to draw a straight line between “news event X” and “market move Y” is not the best path forward. You’re better off flipping a coin if you’re trying to trade a news event and make sense of the underlying market move. Read the price action and move on.
Make sure you read the calendar for upcoming announcements, you have one on this site, personally I use Forex Factory, this will alert to the coming weeks red flags, literally, although I’m not a pure fundamental trader, there are some events that come up regularly and can throw the markets into turmoil, one wrong word, or sentence which is misinterpreted by the markets can send your trade through the roof or spiralling out of control.
Of course what you can’t account for is the throw away line, or off the cuff remark made by someone the markets believe has some influence in the world.
It’s a good idea to learn properly first then jumping on to becoming a full time trader. Keep rolling your eyes on fundamental and technical analysis. Back test your strategies and keep on practicing.