Newbie Here demo trading in the H4 time frame,
I would really appreciate it if someone out there can help me make sense on why the USD reacted in the way it did to a news release this morning in Forex Factory.
Shortly after the release of the news in Forex Factory of the Pending Home Sales m/m at 10:00 AM EST the USD shot up like a rocket for the following pairs:
EUR/USD
GBP/USD
AUS/USD
And for the following pairs its price shot down like a lead ball :
USD/JPY
USD/CHF
The exact results for the news was forecasted at 0.1% and the Actual turned out to be 3.2%. That is a big difference. The usual effect of such news is explained in the following rule: Actual > Forecast = Good for currency.
My question is a basic one. If this 3.2% Actual result was in favor of the dollar currency, why did its price fall down like a lead ball for these pairs:
USD/JPY
USD/CHF
And shoot up like a rocket for these pairs:
EUR/USD
GBP/USD
AUS/USD
If the USD is in the base currency position (left side), doesn't that mean that good news for the dollar should make it's price shoot up like a rocket? Isn't the currency in the base currency position the one that dictates how a pair is suppose to react to good or bad news?
Any info that can help me make sense on how the base currency position vs. the quote currency position is suppose to react to such news will be greatly appreciated. Thanks.
I would really appreciate it if someone out there can help me make sense on why the USD reacted in the way it did to a news release this morning in Forex Factory.
Shortly after the release of the news in Forex Factory of the Pending Home Sales m/m at 10:00 AM EST the USD shot up like a rocket for the following pairs:
EUR/USD
GBP/USD
AUS/USD
And for the following pairs its price shot down like a lead ball :
USD/JPY
USD/CHF
The exact results for the news was forecasted at 0.1% and the Actual turned out to be 3.2%. That is a big difference. The usual effect of such news is explained in the following rule: Actual > Forecast = Good for currency.
My question is a basic one. If this 3.2% Actual result was in favor of the dollar currency, why did its price fall down like a lead ball for these pairs:
USD/JPY
USD/CHF
And shoot up like a rocket for these pairs:
EUR/USD
GBP/USD
AUS/USD
If the USD is in the base currency position (left side), doesn't that mean that good news for the dollar should make it's price shoot up like a rocket? Isn't the currency in the base currency position the one that dictates how a pair is suppose to react to good or bad news?
Any info that can help me make sense on how the base currency position vs. the quote currency position is suppose to react to such news will be greatly appreciated. Thanks.
