Quote:
Originally Posted by Pip Trip
robert,
I never trade the news and discourage folks from doing so but remember - movement in the markets, especially currency markets move due to traders reactions and reactions to fellow traders/banks, not necessarily the news releases and/or the time released.
Cheers
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This is not the first time I have saw this behavior and let me explain a little from my short experience. In my first I has been burned many times trading these days.
First is one of the "motos" of technical analysis: market discount everything.
Thinking as TA traders we should think the NFP news was already embedded in previous price behavior.
One of the best examples and demonstrated by statistics is that market moves are more powerful during FED meetings than when the interest rate announcement days.
A fundamental trader could tell you: Yes, NFP was worst than expected but Unemployment rate was better than expected. So, economy is with health yet.
Back to TA it's interesting tho see the big divergence in minutes, h1/h4 CHF today. Same for EUR and GBP. That's mean something.