Any other factors that move a currency other than news?

[masonlee]

Nice to meet all of you,

I am new here.
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 some 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?


Thank you for your comments!

Mason

[rocketman99]

Nice to meet all of you,

I am new here.
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 some 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?


Thank you for your comments!

Mason

Not a complete list but some things to think about:

Bond sales
Futures closeouts
Central banks intervene to prop up or devalue currencies
Stock markets - I can see a rough correlation at the end of the Australian trading day at market close. Short term positions are closed and money flows to the Euro zone.

There are probably many others that have minor and major impacts, but the biggest movers are generally when central bank governors speak.

[fourier]

Well there will always be news from every country for every currency traded. Forex Factory for instance might not put up that data if that's where your looking for your news data. But you could always keep track with Google finance for a more exotic currency. You just need to find that information for yourself. unfortunately for these more exotic currencies there might not be a sharp move after news.

Then you would want to follow rocketman's advice.

[masonlee]

Thanks for the replies. : )
Great stuff.

Never thought that so many factors are affecting the currency.

If i want to estimate the movement direction of a currency for the next 24 hours, which one i should pay more attention?

[Radar]

News does nothing to the market... The big money movers have already decided which way they are going long before news breaks.

Watch 3 different news shows when there's any financial news... Each one will trot out their pet "finance market expert"... Each "expert" will make his "prediction"... One will say "Up!" the other will say "Down!" and the third will say, "I think the market will take some time absorbing this news before finally deciding on a direction" (on other words, the market's gonna range for a while).

I think that maybe, one of them will get it right, unless the market ranges for a while, in which case, eventually two of them will be right

News is an excuse for the big boys to shake things up, so, if you know of an upcoming news event for a country/currency, stay the hell away from that currency for around 30 to 60 minutes either side of news time, as, generally, the market gets a bit crazy then... Generally, an hour or so after the news event, the market will have settled back into its rhythm.


Have fun!
Radar =8^)

[dudest]

News does nothing to the market... The big money movers have already decided which way they are going long before news breaks.

Watch 3 different news shows when there's any financial news... Each one will trot out their pet "finance market expert"... Each "expert" will make his "prediction"... One will say "Up!" the other will say "Down!" and the third will say, "I think the market will take some time absorbing this news before finally deciding on a direction" (on other words, the market's gonna range for a while).

I think that maybe, one of them will get it right, unless the market ranges for a while, in which case, eventually two of them will be right

News is an excuse for the big boys to shake things up, so, if you know of an upcoming news event for a country/currency, stay the hell away from that currency for around 30 to 60 minutes either side of news time, as, generally, the market gets a bit crazy then... Generally, an hour or so after the news event, the market will have settled back into its rhythm.


Have fun!
Radar =8^)

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[masonlee]

Thank you Radar and dudest.

No wonder quite often the price does not move in the direction indicated by the news.

I have heard that all currencies are inter-connected and a big news on USD will able to shake the whole market, is this true?