Why is EUR/USD rallying today on good US economic data?

Hello everyone,

currently I observe the (and demo-account-trade) the EURUSD pair. Doing so I also pay close attention to the economy news. And as you may have noticed: the EURUSD skyrockets - imho like crrazy. And I don't know or understand why this is the case. According to the news most data for the US-economy are moderate or good, while the EU-economy does not provide half as solid information. Is this, what is going on, one of those "unpredictable" moments on the market? Or did I miss something important here?

Or would you say that this is the preparation for what might come on 2nd April when the ECB might cut the interest rate by another point twentyfive percentage?

Thank you, best wishes!
Curtis

There is such thing as "risk on" and "risk off" modes in Forex. During "risk off" traders usually sell USD, JPY and CHF, and buy EUR, AUD, NZD, CAD, etc. Good news from all countries, including USA, help to switch the "risk off" mode.

i think during "risk off" period, traders Buy USD, JPY and CHF, and sell EUR, AUD, NZD, CAD, etc....??

The news is already priced into the market it doesn't matter what the news is or the figures its surprise figures and news which moves the market. The technicals will always lead the fundamentals they do have some importance.

Look at the open and close weekly what are they trying to do move price up or down the first 30-50% of the trading week is usually accumulation of orders for previous week and the last 50-70% is usually distributions of those orders plus creating the long term trend move.

Sorry if I wasn't clear enough. By "risk off" mode I mean that traders disregard risk in their trading decisions.

Risk on is sell usd and risk off is vice versa = buy usd - right now EU is heading for a better supply zone to turn around according to some views - but it will be clear once the rate decision is out and nfp gives indications . and some PRICE action also depends on technicals so there has been a engulfing on monthly yesterday so PA has hit a new high and hence is strong towards the bulls - Let it hit some strong supply 3266 then this may start moving down - next to pT

Hello everyone.

Thank you for giving me some insight. So the lecture I take from this development - which I still hardly grab as of now - is that I have to consider more different probable changes in any minute on the chart.

I read all the news and had a certain expectation about what would happen before EURUSD skyrocketed in a frenzy; and actually I went into the trap that I wanted the market to behave the way I wanted it to do; therefore I based my decisions and reactions on my subjective perspective instead of the objective price-action. That's bad.

And even worse I had no plan b available just in case the price-action would take a completely or at least slightly, but still seriously different direction.

Today I found 'just another' website which monitors all the fundamental data and news, and regarding the importance of each news it evaluates the economic data slightly different then forex-factory. I take this is as a great opportunity to focus my observations not only on one, but on several sources in order to get a better understanding of things and especially to be able to perform the decision-making-process way better informed ...

Thank you again. The learning curve is steep - very steep. Today I still shake my head about the most recent developments on the EURUSD ... And I am very curious abut what will happen tomorrow when the major European markets trade again after today's holiday ...

Best wishes!
Curtis