oussama94
05-28-2017, 23:31
A good tip for traders is to stack up economic data surprises against price
action to help explain and forecast the future movement in currencies.
Figure 3.2 presents a sample of what can be done. The bar graph shows
the percentages of surprise that economic indicators have compared to
consensus forecasts, while the dark line traces price action for the period
during which the data was released; the white line is a simple price regression
line. This charting can be done for all of the major currency pairs,
providing a visual guide to understanding whether price action has been in
line with economic fundamentals and helping to forecast future price action
action to help explain and forecast the future movement in currencies.
Figure 3.2 presents a sample of what can be done. The bar graph shows
the percentages of surprise that economic indicators have compared to
consensus forecasts, while the dark line traces price action for the period
during which the data was released; the white line is a simple price regression
line. This charting can be done for all of the major currency pairs,
providing a visual guide to understanding whether price action has been in
line with economic fundamentals and helping to forecast future price action