The following questions I cannot figure out.
How do all these news outlets know if the FX volume is going up or down at any given time? They know what is driving the market, market sentiment, current market conditions, at that particular time at any given minute. They know every detail but I cannot seem to figure out one. Any help would be great.
Thank
Pipsloser
Which news outlets? Are you talking about economic calendars?
First off, nobody can reliably know the volume of currencies being bought and sold. However, if a pair’s price rises dramatically, say AUD/USD, you can definitely assume that a lot of AUD is being bought and a lot of USD is being sold. The big banks, the only people with enough money to move prices, don’t buy pairs like we do, they buy actual currency.
Can anyone be certain why the big banks are buying AUD? Probably a lot to do with the RBA interest rate and economic recovery and strengthening exports and blah blah blah. Course, none of that explains why the banks bought AUD today and will sell it tomorrow. And none of it is important if you’re a private retail trader.
Much of what is written in the news as to why markets did what they did on any given day is complete and utter waffle, mainly written by reporters who couldn’t be profitable on a demo account.
It sounds great, it sounds authoritative and may even have a slight basis in fact.
But it would make for really boring reading to say
‘markets went up today because they were down yesterday’.
Take it all with a pinch of salt.
Thanks for the reply.
Thanks for the reply
It is not easy for anyone to know the volume of currencies that are being bought and sold. But if a pair’s price rises dramatically, it can be assumed that a lot of people are buying that currency pair.
Just in some news outlets in general no particular one.
Oh right. Complete speculation then I’d say. Only people who know what is happening and when are the banks as they drive the markets.
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I am not sure which news outlet you are following for forex news. For me, Yahoo Finance is the one that I depend on. Trust me, I never went wrong with it.