Understanding different market conditions

[Vaco]

I've been trading eur/usd live since Monday this week from 7am to 9am gmt mon to wed we had some good ralies within this time period but today was much more choppy.

Were any of the pending announcements today to blame for this or any other factor which we could discuss which effected this pair.

What are your thoughts?

 

[Rhody Trader]

The pending BoE rate decision kept a lot of the market pretty range-bound before 12:00GMT.

 

[Vaco]

The pending BoE rate decision kept a lot of the market pretty range-bound before 12:00GMT.

ok so how does the rate decision in the uk effect the euro/$ cross?

 

[Rhody Trader]

ok so how does the rate decision in the uk effect the euro/$ cross?

Through EUR/GBP. You'll notice that dropped sharply after the announcement.

 

[Vaco]

well i'm glad i'm not the only one that thought it was choppy yesterday!

People trading larger volume is not something that i could have forseen but the BoE rate decision is and i will sit out and see what happens next time they have an anouncement to make.


7-9am was choppy today as well for me but i have expected it as Trichet was speaking at 8am. From looking at the charts it remained choppy untill after the non farm payroll after which is was it had a great run down.

Does the anticipation of trichets speach keep the euro rangebound and choppy till everyones heard what he has to say or was it more the non farm numbers that everyones been waiting for all day?

 

[KillPhil08]

News has been coming out all day, so that will have effected it - especially NFP. You kinda have to build up to the announcements which come out if you know what i mean.

 

[Vaco]

You kinda have to build up to the announcements which come out if you know what i mean.

Not sure what you mean there Phil?

As my trading is limited to a couple of hours in the morning i'm trying to build up a picture of what days to avoid due to news. Hopefully this thread will become a useful tool for others venturing into forex.