Hi guys,
I'm more tech, and less on the fundamentals. NFP is obviously watched by everyone... I have to ask - what happened on Friday?
Good news for USD, so USD spiked up. Ok got that.
I also noticed that AUDJPY and GBPJPY (and others) shot up too... but then, they all retraced, of course. The thing is
- USDJPY only retraced about 50% of the spike value.
- AUDJPY retraced almost 200% of the spike at the news announcement
- GBPJPY retraced about 100%
If some news genuinely came out indicating which changed people's perceived value of a currency, why do the values retrace so much almost immediately?
Is it merely people taking in profit from bets place prior to the news coming out?
Cheers,
MooMooFX
I'm more tech, and less on the fundamentals. NFP is obviously watched by everyone... I have to ask - what happened on Friday?
Good news for USD, so USD spiked up. Ok got that.
I also noticed that AUDJPY and GBPJPY (and others) shot up too... but then, they all retraced, of course. The thing is
- USDJPY only retraced about 50% of the spike value.
- AUDJPY retraced almost 200% of the spike at the news announcement
- GBPJPY retraced about 100%
If some news genuinely came out indicating which changed people's perceived value of a currency, why do the values retrace so much almost immediately?
Is it merely people taking in profit from bets place prior to the news coming out?
Cheers,
MooMooFX