after US employment numbers out, what happened then?

[CashOutChick]

After the release of US employment numbers, the EU rallied for a while then for the next 2 to 3 hours, the EU declined, what happened there?
When prices move that rapidly downward (or upward) can i assume the banks are responsible for pushing it lower (or higher)?

 

[Trader333]

The market always reacts to economic news if the actual result is very different from the forecast which it was for employment. However, in the bigger picture this is just noise so it is not unusual for the market to return back to where it was prior to the announcement. The sudden change in price is down to traders all wanting to sell or buy at the same time.


Paul

 

[CashOutChick]

The market always reacts to economic news if the actual result is very different from the forecast which it was for employment. However, in the bigger picture this is just noise so it is not unusual for the market to return back to where it was prior to the announcement. The sudden change in price is down to traders all wanting to sell or buy at the same time.


Paul

I could understand why the EU rallied after the announcement but after that it was like the big players (banks?) did not want the EU to reach higher levels (historic high of 1.5000?) and started selling the EU. I think the EU dropped more than 100 pips after the announcement of the US jobs data.

 

[Trader333]

Why are you presuming it was the banks ? There are many other possible causes and like I said that in the larger scheme of things news is just noise and if you check longer term charts (ie weekly) then this becomes evident.


Paul

 

[CashOutChick]

Why are you presuming it was the banks ? There are many other possible causes and like I said that in the larger scheme of things news is just noise and if you check longer term charts (ie weekly) then this becomes evident.


Paul

I think that if any party who can move the rates that much in such a short time has to be large institutions (like banks). Isn't that true? Anyway, I had a look at the EURUSD for weekly time frames. It seems to be trending upwards. The news like what you said was just "noise" in this time frame.

 

[atomm]

When prices move that rapidly downward (or upward) can i assume the banks are responsible for pushing it lower (or higher)?

The big liquidity providers ( i.e the participating banks in forex ) normally pull out their bid and ask orders immediately after ( sometimes minutes before ) a great news release ( eg. NFP ). They try to minimize their own risk exposure at the uncertain moment, until they can sense the probable price behaviour due to the news. This may take sometime. Remember they also participate in the business with the goal to earn money.

In brief, lack of liquidity causes the spike as opened market orders get filled at whatever available market prices that have the available matching bid or ask orders; and it is not surprising that some opened limit orders may not get filled at all.
This is noise if you want to call it ( up to your own interpretation ).

Just my 2 cents.