If you are a Forex Trader and rely on economic news, you will find the whole market is a flaw deception. Some gurus and data will tell you certain currency will go up or down, the data really make sense for you to follow their thoughts.
Once you are confirmed the so called fundamental point of views. You enter the trade and the market start go against you. Huh? Sound familiar for those who follow the fundamental.
I agree with one of the gurus view that currency basically is a flaw deception. Trader and Speculators who are experienced would not follow the news instead have their own thoughts. In many ways, Forex trade 24 hours and almost 7 days, millions of participants with different motives buy and sell the pairs of currency. Some of them are pure model fund, other may be speculation or for hedging purpose. The so called intrinsic value of the currency always depend on the political and economic situation. When Europe hit by sovereign debts, people start selling Euro and buy USD. Once consider as save haven of currency players is no more safe when the news start pop out the double dips possibility in US. The different perception created by big boys will change the market sentiment and the direction of the currency.
I strongly agree the points of view below;
Bloomberg 27 July 2010:
“Foreign exchange is the world’s biggest fruit and vegetable store, with millions of people playing it 24 hours a day,” Goldman Sachs Chief Global Economist Jim O’Neill said on July 21 in a radio interview with Tom Keene on Bloomberg Surveillance. “Anybody who thinks they can get foreign exchange right all the time should be in a lunatic asylum.”
