Hy all,
Can you please tell me why when an bad news from Europe for example shows, the other pairs unaffected directly by the news, moves also?
For example today ECB news hit the USD/JPY also and -50pips.
There are some position closing made by traders to have more margin to invest/ sustain EUR/USD trades?
Must remember bro, the real players in this game don’t play the same as us. So if bad news on the Euro comes out and say they want to sell euro and buy yen then they’ll sell euro’s and buys usd then at the same time sell those lovely usd and buy yens. Thus you’ll see the price action on both pairs. The usd really is king.
Markets are connected, money comes out of one trade and needs to find another one. Trading is not as simple as many believe and not as complicated either. You need to understand how things are connected which comes through experience. Just because a bad report comes out for one economy does not automatically mean the currency will drop to give you another example. Trading is not an exact science.