Friday NFP: better numbers than anticipated...while not terrific, both the current number and the last two months were revised higher than expected. Assumption: Good for USD. Result: USD falls across the board.
Sunday S&P downgrade to US debt: Most "experts" have said it is a downgrade of the political process, but still find the US fiscal policy of some concern thus a downgrade AND negative outlook. Asumption: Bad for USD. Result: USD gaps down (expected) then rallies HARD. (EUR/USD almost 300 pips, GBP/USD 180 pips).
HUH? I've been doing this for some time now and understand the "market makers" are taking money away from us retailers...blah, blah, blah. What I don't understand is the BIG BOYS are also trading into this rally and were also fading the NFP....
I don't get it...if the fundamental analysis of the US economy is "negative" by the "experts" in not one but several rating agencies...and if the fundamental reports are increasingly poor to negative...WHY on earth is the USD rallying?
Someone please give me a lucid intelligent answer...if you have one...I know I certainly don't.
Sunday S&P downgrade to US debt: Most "experts" have said it is a downgrade of the political process, but still find the US fiscal policy of some concern thus a downgrade AND negative outlook. Asumption: Bad for USD. Result: USD gaps down (expected) then rallies HARD. (EUR/USD almost 300 pips, GBP/USD 180 pips).
HUH? I've been doing this for some time now and understand the "market makers" are taking money away from us retailers...blah, blah, blah. What I don't understand is the BIG BOYS are also trading into this rally and were also fading the NFP....
I don't get it...if the fundamental analysis of the US economy is "negative" by the "experts" in not one but several rating agencies...and if the fundamental reports are increasingly poor to negative...WHY on earth is the USD rallying?
Someone please give me a lucid intelligent answer...if you have one...I know I certainly don't.