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What caused the currency price to move?

masonlee
Jan 14 2014 at 08:10
3 posts
Hello,

I found that some time when there is no economic data are released for a currency pair, the price of that pair still move quite a lot and quite volatile.

Some time, even when there is economic data are released, the price of the currency pair move in opposite direction or just did not move, it seem like there is some other factors that are affecting the movement of a currency.

Anybody here can list down any possible factors that may affecting the price of a currency?


Thanks.

masonlee
Jan 23 2014 at 07:51
3 posts
Anybody have any comments? 😄

strongwillow
Jan 23 2014 at 14:45
5 posts
A lot things may cause FX price to move. For example, cross-border acquisition, oversea asset purchasing, import and export trading, etc. This happens in banks, who provide foreign currencies to you.

ZOOM
Jan 23 2014 at 15:09
39 posts
FX pairs can move for whatever comes to your mind. War, peace, oil prices, inflation, M&A, bonds, equities rally and what not. For example, you could have somebody buying bonds of another country, converting money, while this would not necessarily pass through the spot FX, it will affect the FX market too.

vontogr (togr)
Jan 23 2014 at 15:53
4862 posts
masonlee posted:
Hello,

I found that some time when there is no economic data are released for a currency pair, the price of that pair still move quite a lot and quite volatile.

Some time, even when there is economic data are released, the price of the currency pair move in opposite direction or just did not move, it seem like there is some other factors that are affecting the movement of a currency.

Anybody here can list down any possible factors that may affecting the price of a currency?


Thanks.


The answer is: traders

Thalantas
Jan 23 2014 at 17:20
192 posts
togr posted:
masonlee posted:
Hello,

I found that some time when there is no economic data are released for a currency pair, the price of that pair still move quite a lot and quite volatile.

Some time, even when there is economic data are released, the price of the currency pair move in opposite direction or just did not move, it seem like there is some other factors that are affecting the movement of a currency.

Anybody here can list down any possible factors that may affecting the price of a currency?


Thanks.


The answer is: traders


The answer includes traders but is not only traders.

@ZOOM is entirely right. Everyone affects the market. Some huge hedge fund might dumb their CHF and make the market crash for a second...this is purely the law of offer and demand.
You have to understand that forex is gigantic. Even you when you go visiting Paris and pay with your US credit card for a ticket to go on top of the eiffel tower you are doing FX. Now scale it to an industrial level and think about all these companies that buy and sell constantly everywhere in the world.

A smooth sea never made a skillful sailor.
CrazyTraderfx (CrazyTrader)
Jan 23 2014 at 17:39
1718 posts
I have also notice once that it was raining cats and dogs... so suddenly eurusd goes down.

I think the sun can have some impact too 😉

FXWorkz (Silverthorn)
Jan 25 2014 at 13:33
268 posts
CrazyTrader posted:
I have also notice once that it was raining cats and dogs... so suddenly eurusd goes down.

I think the sun can have some impact too 😉


Here in Australia I have noticed an increase in volatility and volume at night so I firmly believe it's Not the sun but the MOON that causes high and low tides and sucks the money from one side of the planet to the other. 😲

You can't spend open trades.
masonlee
Feb 11 2014 at 08:31
3 posts
Thanks for the comments.😄
I have learned a lot from all of you.

I am curious whether USD will slide sharply when Mr. Obama late to the office for 10 minutes.😉

Forex21
Feb 11 2014 at 10:06
416 posts
1) Speculations of hedge funds, banks and institutional traders.
2) Political decisions.
3) War
4) Fundamental news (Non Farm Payrolls, PMI, CPI etc..)
...and of course Warren Buffet and George Soros :)

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