Trading Fundamentals for the Forex Dashboard

July 23, 2015

Taking trades during the summer months is always complicated. And, quite often there is much uncertainty in the air. The Forex dashboard just doesn't move unless some trading fundamentals change.

Trading Fundamentals

Of course, it very much depends on the strategy one uses but most of us prefer to trade under „normal“ conditions.

To go even further, those who only trade news that affects the Forex dashboard will suffer the most. As liquidity creates ideal conditions for all sorts of fake moves, trading fundamentals differ from a day to another.

New Zealand Trading Fundamentals

Yesterday, the 22nd of July was a perfect example. At the beginning of the Asian session, Reserve Bank of New Zealand (RBNZ) announced another 0.25% rate cut.

As such, it brought the official cash rate down to 3.00%. The cut was less than expected.

But, the market's reaction was a powerful one.

Forex Dashboard

The price jumped immediately without ever looking back. What makes the whole event even more bizarre is the fact that the rate statement explicitly said that further easing is very likely.

Combine these two factors, and you’ll get a super bearish atmosphere. However, the Forex dashboard doesn't always react as planned.

Conclusion

Trading fundamentals change with the news. However, it doesn't mean we shouldn't trade the news.

Instead, it means we have to understand more about the factors that influence the Forex dashboard.

Capital Properties FX
July 23, 2015

Capital Properties FX