US rate cut effects on JPYand AUD? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Effects of economic data releases 15 replies

The AUD/USD 1.00 EUR/AUD 1.60 GBP/AUD 2.00 Thread! 0 replies

Gbp/usd And Its Effects 0 replies

Election effects? 16 replies

Cross Effects 1 reply

US rate cut effects on JPYand AUD?

  • #1
  • First Post: Dec 11, 2007 2:25pm Dec 11, 2007 2:25pm
Im fairly new to forex, and I was watching the effects of the rate cut that came out today. I see that cut has had a positive effect on the JPY and a negative effect on the AUD. Maybe there has been effects on other currencies as well? Can someone please explain why this is?
  • #2
  • Dec 11, 2007 4:32pm Dec 11, 2007 4:32pm
I personally never try to analyze too much into how news affect price because quite frankly more often than not you see some crazy ass effects. For example, last week's GBP rate cut saw the sterling pound equally rising against some currencies, plummeting against some others, and remain totally flat against a few of other. In my opinion, the best way to treat major news like interest rates is to let the bomb drop, let the chart wiggle whatever direction it wants to and whenever the dust settles I re-asses the situation from there.

I dunno, but trying to read into the news in the heat of the moment is as far as I am concerned rather futile.
  • #3
  • Dec 11, 2007 4:43pm Dec 11, 2007 4:43pm
Quoting WTB
I personally never try to analyze too much into how news affect price because quite frankly more often than not you see some crazy ass effects. For example, last week's GBP rate cut saw the sterling pound equally rising against some currencies, plummeting against some others, and remain totally flat against a few of other. In my opinion, the best way to treat major news like interest rates is to let the bomb drop, let the chart wiggle whatever direction it wants to and whenever the dust settles I re-asses the situation from there.

I dunno, but trying to read into the news in the heat of the moment is as far as I am concerned rather futile.
Good call!

News isn't worthy of a trade- in and of itself IMHO. Currencies will continue on a predetermined path regardless of news. News is a temporary hiccup in the movement. Unless an unexpected release is made and changes the value of the currency. Otherwise, like in this case the market had already adjusted for the change and then waited to make sure they were right and then continued on. I wouldn't waste too much time trying to figure out why, rather trade your charts info after the dust settles. Good luck!
Robonacci com
  • #4
  • Dec 11, 2007 4:52pm Dec 11, 2007 4:52pm
Hmm, does anyone know which news usually impact other currencies as well?

The effect was indeed pretty crazy. And Gain Capital is bad when it comes to News announcements. Exiting USD positions wouldn't have been enough, does this mean exiting all positions when it comes to major NEWS?
  • #5
  • Dec 11, 2007 5:03pm Dec 11, 2007 5:03pm
Quoting Skyhr
Exiting USD positions wouldn't have been enough, does this mean exiting all positions when it comes to major NEWS?
Well, in my opinion trading through major stuff like interest rates, NFP, etc is down right gambling. Any unexpected outcome of the news can turn your trade belly up for 100+ pips within 10 seconds. I personally stop considering any entry few hours prior any major announcement.
  • #6
  • Last Post: Dec 11, 2007 5:06pm Dec 11, 2007 5:06pm
Quoting WTB
Well, in my opinion trading through major stuff like interest rates, NFP, etc is down right gambling. Any unexpected outcome of the news can turn your trade belly up for 100+ pips within 10 seconds. I personally stop considering any entry few hours prior any major announcement.

Right, but would it be only the USD reports? And I wouldn't have thought the reports would have affected AUD and NZD as well. So it's like, would the major EUR reports also affect the other currencies like this? Which other reports would do stuff like this so that I may exit beforehand, you know?
0 traders viewing now