Why EURUSD hiked up after the CPI announced to day?

Question

Since CPI announced 0.3 against the 0.2 consensuse, I expected it slip down, so I sold it. but suddenly it hiked up unexpectedly. Someone tell me WHY! I losed 1500$

Answer 1

I just tried to answer this question, typed several paragraphs, then you pulled it. What's the deal?

Anyway, I also sold the EUR this morning, but got stopped out on the spike up at 8:30 prior to the decline. It then declined 50 pips.

If you had used a trailing 20 pip stop, your trade would have worked out fine.

Don't you move your stop to breakeven when it goes in your favor?

You did the right thing by executing on the short side, but just didn't manage it when it started running. You have to know that a news release that cements in another rate hike is going to cause volatitility.

The reasons it went a certain way are unimportant. Just because it doesn't do what you expect is no reason not to trade it. Just follow price and volume, increase your odds, and decrease your risk where and when possible. Sometimes there are no reasons, and you would rarely trade if you had to have a reason every time from some media talking head.

Trade the Mini when volatility increases if you can't afford to lose $1,500.

Answer 2

The euro's rise came after the manufacturing purchasing managers index for the 12 euro countries rose to 57.1 in April, up from 56.1 in March, its highest reading since September 2000.

Although the country breakdown was mixed, the reading remains consistent with strong increases in manufacturing activity across the area. That, in turn, is expected to increase hopes that the euro zone's economic growth could see more healthy expansion in the second quarter of 2006 and cause the European Central Bank to lift its key interest from 2.5 percent -- and this powered it's currency ahead of the USD.

Answer 3

I feel its more because of combination of factors -

1. The Fed chief's speech as Anti USD
2. market is at 38.2 Fib level on daily charts//So a bounce was expected
3. The Europeon data was focussed on inflation.

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