The foreign exchange forex trad forextradingwebsiteonlineg site cashback forex always filled with a variety of good and short every day, how to see their impact on the market, for the short term grasp of the timing seems very important Anything is relative, good and short factors are not absolute in different times, different market conditions, they play a different role for the usual sense of short, in the For example, in early December 2002, the European Central Bank announced a reduction in interest rates in general, a currency to reduce interest rates is definitely a negative factor, the euro should fall, but at the time, the markets attention All focused on the issue of whether the United States launched a war against Iraq on the euro in 1.00 parity under repeated oscillations, the desire to attack upward, in view of the ECB may reduce interest rates, the euros rise was temporarily suppressed after the euro rate cut, the market believes that the negative has been released, and before the rate cut has long been agreed by all sides of the market, and has been fully digested this time to introduce a rate cut policy, it can not Called a short, but there is a short out is a good feeling has been suppressed the market to do more power, was instantly excited out, pushing the euro all the way up, before and after a total of nearly four months, reached 1.1084 before entering a large-scale adjustment From this example we see that the euro to reduce interest rates is not considered by the market is a short, then we should also respond to changes in the market Never copy from the textbook, commit dogmatism or this wave of the euro 10% of the market and you have no chance Not that all the short we should take as good, all the good we should take as short we say, only in a particular time, a particular market conditions, forextradingbrokerwebsite produce such the opposite effect We give another positive example nbsp;July 15, 2003, Federal Reserve Chairman Alan Greenspan testified before the White House Congress Greenspan said he predicted that the U.S. economy will grow at a faster pace, the 2003 U.S. gross national product GDP will increase between 2.5% and 2.75% and implied that the economy grew very moderately in the first two quarters of this year, and over time, the U.S. economy will grow significantly this year Accelerated at the same time he also said he was prepared to keep interest rates low for a considerable period of time to stimulate weak economic growth and prevent the danger of a price downturn Federal Reserve Chairman Alan Greenspans testimony just ended, the market immediately reacted positively to the dollar rose sharply against all currencies, with the dollar index soaring, having reached a high of 97.09 and finally closing at 96.91, closing out A recent rare large positive line the next day, the dollar index rose again inertia, the highest had reached 97.45 six major basic fall miserable, a wretched piece here, we do a ranking of the currency decline that day: at the top of the list is the British pound, down 227 points next is the Canadian dollar, down 164 points Swiss franc down 158 points euro down 141 points yen down 84 points The smallest decline is the Australian dollar fell 71 points This is the ranking of the absolute value of the decline, if ranked by the percentage of decline results are as follows: the top of the decline or the pound fell 1.4%, followed by the euro fell 1.25%, the Canadian dollar 1.2%, the Swiss franc fell 1.1%, the yen fell 0.7%, the smallest decline or the Australian dollar fell 0.4% For the re-emergence of the diving market, the We should rationally analyze the non-U.S. dollar currencies were in a strong downtrend at the time, which we must admit in the downtrend, any unfavorable factors, including negative news or negative data, will become the reason for the short side to make a big short If there is no Greenspan testimony in the U.S. Congress, the market will also fall, may fall more slowly and pull time a little longer and unfavorable news, accelerating the decline in the exchange rate, making it a step down, while also shortening the time to fall We can make a hypothesis that if Greenspans speech in May 2003, when the market was in the middle of a strong upward trend, then the old speech will only make the market appear a short term back, one will not fall so much, will not appear Diving market, two rising trend is difficult to change, will continue to maintain We can also make a second assumption, if Greenspans speech on the future of the U.S. economy is full of pessimistic arguments, then the market will continue the weak rebound pattern, the same will not reverse the downward trend will continue, but the time spent in place will be extended if placed in May, the market Absolutely there will be a big rise in the market, all the non-dollar currencies will be the chicken and the dog This is the impact of the news in the short market and the long market We have such detailed assumptions, just to let you in the future market, the news of the changes to make an objective and rational judgment of the good news in the long market exchange prices to rise, good news put in the short market, the exchange rate will rebound; bad news Put in the long market, the short term to pull back, bad news put in the short market, the exchange rate will plunge Here we expand the idea again, if a currency market is expected to cut interest rates, lower interest rates will of course have a very negative impact on the currency trend if the currency is published in the countrys economic data, showing that the country may have the first signs of inflation, for example, the producer price index rose, the consumer price index rose. The consumer price index rose, such data in normal circumstances will cause the currency exchange rate to fall and in the case of market expectations of a possible interest rate cut, the release of such data can only be the market that the possibility of lower interest rates in the currency is decreasing, is good data then the market not only will not fall, but will rise We repeatedly give such examples, is to let you have a dialectic of negative and positive Any data, news should be placed in a specific time and space, placed in a specific market, comprehensive judgment analysis, in order to come to a conclusion whether it is bearish or good rather than judge the data and news in the end is bearish or good, it is better to see the market reaction of many investors to it, which is the root cause of the impact of the market investors buying and selling behavior
