Market Moves Not Always Tied to News Events, Traders' Actions Can Also Drive Shifts
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Not every market movement can be explained by news events. Sometimes the market moves on its own in a self-reinforcing way.
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As an analyst, I used to try explaining every pip of market movement with news. But I've realized that's impossible.
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Sometimes after a market movement, analysts find some random news event to "explain" it. But those connections are often just speculation after the fact.
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Don't always trust the explanations you read about why exchange rates moved in a certain way.
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The FX market involves a lot of participants guessing what others might do. Sometimes their actions cancel out, other times they reinforce each other, driving bigger moves.