USDMXN question about price movement after 'Good' USD news
Aug 12, 2020 at 13:00
390 Views
4 Replies
Aug 12, 2020 at 13:00
If there was 'Good' news for USD then why would the USDMXN price go downward? If I understood correctly, good news for USD should have caused a movement up (meaning more Pesos required for the Dollar). All of the 8:30 news was better than expected for the USD this morning. It just doesn't make logical sense to me that the price would move in favor of the Peso with 'Good' news for the Dollar.
If anyone can help me understand this better with any explanation, I'd really appreciate it. Thank you ahead of time!
If anyone can help me understand this better with any explanation, I'd really appreciate it. Thank you ahead of time!
Aug 12, 2020 at 14:39
Well it seems the move up eventually happened / was delayed, but I guess I have to say I'm still curious why the initial price movement (*at the time of the 'Good' USD news announcement) was a hard move downward (*seemingly in favor of the Peso) and then 30 to 45 minutes later the logical price move upward finally occurred? Was that an example of a 'bear trap' as they say, to trick retail traders before the large move up in price?
Again any insight into the WHY of this happening would be very much appreciated!
Again any insight into the WHY of this happening would be very much appreciated!
forex_trader_1151190
Member Since Feb 28, 2020
17 posts
Aug 13, 2020 at 04:13
MXN strength is stronger than USD strength, hence goes down regardless of news.
Member Since Jul 23, 2020
869 posts
Oct 06, 2021 at 06:23
It depends on which asset has more strength price will go in that direction.
Member Since Jul 23, 2020
759 posts
Oct 06, 2021 at 12:40
News trading is quite tough in my opinion.
*Commercial use and spam will not be tolerated, and may result in account termination.
Tip: Posting an image/youtube url will automatically embed it in your post!
Tip: Type the @ sign to auto complete a username participating in this discussion.
