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Hi there,
I found that some time when there is no economic data are released for a currency pair, the price of that pair still move quite a lot and quite volatile.
Some time, even when there is some economic data are released, the price of the currency pair move in opposite direction or just did not move, it seem like there is some other factors that are affecting the movement of a currency.
Anybody here can list down any possible factors that may affecting the price of a currency?
Mason
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In the first situation you describe, it can simply be a series of large orders being placed (large companies, hedge funds, etc.), which can also trigger additional orders by speculators.
In the second situation you describe, this is a practice known as stop hunting, where banks and brokers will intentionally and temporarily drive a currency pair in the opposite direction in order to wipe out traders' stops. Here's one of many articles you can find on the subject. The best way to counter this practice is to avoid tight stops, give them some room!
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