Good afternoon,
i would like to make some comments to the reaction of US indices to the NFP report published some minutes ago.
Its defenitly clear - it was "more green than red", with a lower unemployment rate than expected, and a growing fear that the FED will not cut interest rate in near future.
As we know, the fear of higher interest rates knocks down main indices and makes USD stronger, but if someone looks at Nasdaq (screenshot), the reaction is a little bit strange. The immediate reacton to the news was in line with the "Forex schoolbook rules" ( index shot down), the counter move up some pips was also something that has to be considered, but after that up-correction should come a reaction to zhe main fear of " no rate cut", and indices should move down.
But Nasdaq and other indices climb stadily up - honestly speaking, thats something i cant explain to myself and i am very curious which arguments back these upmoves now.
i would like to make some comments to the reaction of US indices to the NFP report published some minutes ago.
Its defenitly clear - it was "more green than red", with a lower unemployment rate than expected, and a growing fear that the FED will not cut interest rate in near future.
As we know, the fear of higher interest rates knocks down main indices and makes USD stronger, but if someone looks at Nasdaq (screenshot), the reaction is a little bit strange. The immediate reacton to the news was in line with the "Forex schoolbook rules" ( index shot down), the counter move up some pips was also something that has to be considered, but after that up-correction should come a reaction to zhe main fear of " no rate cut", and indices should move down.
But Nasdaq and other indices climb stadily up - honestly speaking, thats something i cant explain to myself and i am very curious which arguments back these upmoves now.