A Fight Is Going on Between the Economic Data and Politics
Skerdian Meta • 1 min read
Politics have been ruling the financial markets in the last several weeks, particularly since Trump entered office about 10 days ago. But forex traders who rely on the economic data are starting to fight back now.
The US ADP non-farm employment change which was released a while go seems to be going in favour of the data traders. It was a really decent number of nearly 100k more jobs than the analysts were predicting.
All major currencies immediately dived against the USD. EUR/USD is about 60 pips lower now while USD/JPY is back above the 113.50 level.
The only major currency which is being bloody stubborn is the British Pound. Instead of losing a few pips, GBP/USD jumped 50 pips after the release. That brought an end to our EUR/GBP signal. The 100 SMA on the H1 forex chart couldn´t do anything about it.
That signal is now history, but at least the data traders are trying to get back control. I hope they do, so we can get a break, but I´m sure it won´t last long because the Donald is sitting right in front of his computer screen waiting for the right moment to shock the forex market again. Tough times guys.