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Your Forex Trading Clue: The Reaction to News

Your Forex Trading Clue: The Reaction to News

5 Years ago | May 26, 2015 00:00:00

The trading adage, it’s not the news but the reaction to news that matters was proved once again this past week and gave a valuable clue that the risk had shifted to the dollar upside. This is especially relevant in the current environment where the Fed has made its decision on when to start raising rates data dependent. This has seen the market push out expectations for a rate hike following weak first quarter economic growth and a slow start to the second quarter.  This puts the Fed in the same boat as the market scrutinizing the latest piece of data to gauge the strength of the economy and degree of inflation.

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