hi. i have a question. why EUR/USD increase while federal rates increase???? i expected that this news cause to decrease the EUR/USD!!!
please inform me. thanks
{quote} Already priced in. No surprise. No new USD longs. Only long's exiting after the increase (selling) then USD sell stops firing off during the spread increase & counter movement.
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Thanks... im looking at audusd.. its been going up the hours leadIng to this announcement. If the rate hike is priced in... why would audusd go up leading to this? Shouldnt it be going down when usd is being bought? No other news in aussie seems to have been causing this
hi. i have a question. why EUR/USD increase while federal rates increase???? i expected that this news cause to decrease the EUR/USD!!! please inform me. thanks
Ignored
Read the first page. This movement is NOT new on expected rate increases. This is beginner stuff.
{quote} Thanks... im looking at audusd.. its been going up the hours leadIng to this announcement. If the rate hike is priced in... why would audusd go up leading to this? Shouldnt it be going down when usd is being bought? No other news in aussie seems to have been causing this
Ignored
This is the exit of USD longs, sellers of Usd closing positions with a buy order, not to mention everyone's buy stops if they sold Xxx/Usd on the event. Not enough sellers in AudUsd to keep buying down so there's a lack of liquidity & price has moved up and away.
Eur/Usd has much more Dollar volume than Aud/Usd so we can just look at the Eur/Usd chart as the originator of A/U, N/U moves as you are correct, no fundamental changes in the Aussie at all. There was a Chinese headline about them not having to intervien so much if the US can raise rates, making the Yuan weaken naturally, helping the Chinese economy. Australian economy is linked with China very well, making the Yuan correlate with Aussie strength.
*Edit: this move threw a bunch of currency pairs out of wack. If I had to gamble, Usd/Jpy is on sale at 113.40
