Hi guys!
I found a good article written by John Jagerson from learningmarkets.com regarding the Unemployment news. Let’s read it together shall we!
“The increase in unemployment claims today brought the aggregate number up even further. That is certainly not a good sign for the USD… or is it? This gets to the root of an issue many traders struggle with in the forex. They deal with a news announcement all by itself and try to draw conclusions about its affect on the relevant (in this case the USD) currency. We have talked about not trading the news in a vacuum before but today’s release is another great example of why this matters.
If we look back in recent history to see what the USD did during periods of “high” unemployment in the US we see a higher probability for a stronger dollar (2003 being a big exception) than a weaker one. One of the issues relates to the fact that the world economy (for good or ill) is a USD centric one…” click here to read the full article
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