newbie111 Posted January 3, 2012 Report Share Posted January 3, 2012 (edited) I just don't get it. Todays report was supposedly good for the USD. The previous report was 52.7, the forcast was 53.3, and the actual report today was 53.9. Now from what I understand the actual was a good report for the USD, but instead of falling, the GBP, and EUR rose and beat the poop out of the USD. Can someone please enlighten me on how to interpret this in Layman's terms. Any help would be greatly appreciated. Edited January 3, 2012 by newbie111 Quote Link to comment Share on other sites More sharing options...
iwjw Posted January 3, 2012 Report Share Posted January 3, 2012 Ever heard of "risk on" / "risk off"? If risk is "on", like today, money is flowing out of the usd into riskier assets like stocks, commodities and so on This game is already running for quite a while....never noticed that? But there are analysts, who are of the opinion, that this behaviour could change this year newbie111 1 Quote Link to comment Share on other sites More sharing options...
newbie111 Posted January 3, 2012 Author Report Share Posted January 3, 2012 (edited) Ever heard of "risk on" / "risk off"? If risk is "on", like today, money is flowing out of the usd into riskier assets like stocks, commodities and so on This game is already running for quite a while....never noticed that? But there are analysts, who are of the opinion, that this behaviour could change this year Thank you for such a quick reply. Emmmm, OK let me see if I got this correct. So if risk were off, then the the money would not have been flowing to other places and the USD woud in fact have gotten stronger, causing the EUR/USD AND GBP/USD to drop correct? So tell me, where would I hear or read bout the risk being on or off. I don't see it anywhere on the FF calendar. A million Thanks for your help. Edited January 3, 2012 by newbie111 Quote Link to comment Share on other sites More sharing options...
iwjw Posted January 3, 2012 Report Share Posted January 3, 2012 (edited) Hi newbie111, your assumption is correct..."risk off" works the other way round To get an idea what kind of day we are currently in, just look at the Dow Jones or S&P and you know what's going on (finance.yahoo or whatever) As for today, the Dow Jones was up 250 points at some time and you could see the risk related currencies like audusd, nzdusd, gbpusd go up. At the same time, usdcad was going down because cad is considered as a "risky" currency EDIT: but you can't follow blindly this rule of thumbs....especially the eurusd can do excactly the opposite of what you're expecting Edited January 3, 2012 by iwjw newbie111 1 Quote Link to comment Share on other sites More sharing options...
newbie111 Posted January 3, 2012 Author Report Share Posted January 3, 2012 Thank You Bro for the very valuable information. I got nailed Today for 100 pips. I wished I'd asked first. Quote Link to comment Share on other sites More sharing options...
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