Hi,
just out of interest, I was following what would happen in the GBP/USD market after today’s UK inflation data release.
On 11:30 (GMT+2:00) it came out 1.9 % vs. 2.3 % expected and GBP went down like a stone within couple of seconds (5 seconds - you can see the attached graph).
Couple of thoughts I had in relation to this:
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Trading on News Releases indeed does not seem like a good strategy - since the price dropped that much within first 5 seconds (!) - before even it was announced on Internet radio.
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I could not understand why GBP went down? From my Macroeconomics lessons, I was thinking that since inflation went down, the exchange rate of the domestic currency should have appreciated? Or am I missing something here
Good luck,
D.
P.S. Those 2 losing trades you can see in the chart as well - I was just guessing. The first one was totally stupid. The second one would have been profitable unless stopped by a too tight S/L.
