Currency factors
US dollar USD
Eurozone EUR
Japanese yen
JPY
Britain pound
GBP
Trading priority
1
2
3
4
Central bank
FED
ECB
BOJ
BOE
Effecting employment
reports
Labour market reports
Monthly Employ reports released on first FRIDAY of each
month
non farm payroll (NFP) (establishment. Survey report)
unemployment rate (household survey report)
ADP national employment report released on first
WEDNESDAY
8:15 EST
CCI
ISM report
regional FED indices
Data from ECB
ZEW reports
PMI
eurozone confidence
EC reports
germany and france
data reports are
important
Tankan index
stock market
reports
exports growth
all industry and
tertiary indices
reports
ministry of
finance
influences JPY
BOE minutes and
quaterly inflation
reports PMI
BRC retail sales
and shop price
reports
GFK reports
nationwide
consumer reports
CBI trade and
industrial survey
reports
Consumer data reports
Consumer sentiments
CCI
consumer sentiment index report released twice a month
ABC consumer report released every TUESDAY
personal income and spendings
retail sales /goods orders
home sales
Royal Institution of
Chartered
Surveyors (RICS)
house price balance
Business data reports
ISM manufacturing reports
Chicago PMI report
both released monthly
NY state index report
Philadelphia fed index
richmond manufacturing index FOMC reports
Industrial and
manufacturing
production reports
Currency pairs
EURUSD, USDJPY, GBPUSD, AUDUSD,
USDCAD, USDCHF, NZDUSD
7
EURJPY, EURCHF
EURCAD, EURNZD
EURAUD 5
CHFJPY
CADJPY
GBPJPY
AUDJPY
NZDJPY 5
GBPCAD
GBPAUD
GBPNZD
GBPCHF 4
Currency factors
Australia dollar AUD
Canadian dollar CAD
Swiss franc CHF
Newzealand dollar NZD
Trading prior
5
6
7
8
Central bank
RBA
NBC
SNB
RBNZ
Effecting reports
RBA minutes and rate
decisions
westpac consumer
confidence
NAB consumer confiedence
Canadian data mirrors US
data
IVEY PMI report
international securities
transaction
SNB speeches and rate
decision
KOF reports
retail sales
PPI CPI
unemployment rates
NZ card spending
ANZ bank confidence
trade balances
Currency pairs
AUDCAD AUDCHF
AUDNZD 3
CADJPY
1
CHFJPY 1
NZDCAD NZDJPY
NZDCHF 3
EURUSD
USDJPY
GBPUSD (cable)
USDCHF (swissy)
High liqudity
liquidity
liquidity
Less liquidity
EUR increase then BUY
USD increases then SELL
USD increase then BUY
JPY increases then SELL
USDJPY moves in same direction of
USD (check USDX in tradingview)
Cable is similar to the EUR/USD in the Swiss are most concerned with
that it trades inversely to the overall its level against the EUR as
USD.
opposed to the USD.
US news and data mainly moves
the currency pair in short term
EUR news also moves the pair
Highly influenced by US interest
rates this currency pair has
traditionally had a close correlation
with U.S. Treasuries. When interest
rates head higher, Treasury bond
prices go down, which lifts the U.S.
dollar, strengthening USD/JPY prices.
highly politically sensitive
If U.S. economic news
disappoints, for instance, both
sterling and EUR/USD will move
higher. But if EUR/USD sees a
60-point rally on the day, cable may
see a 100+ point rally.
Price action tends to see one-way
traffic in highly directional markets.
Often see any reversals on the same
day trade if directional move is high
or low
Price action tends to see one-way
traffic in highly directional
markets. tend to see minimal
pullbacks or backing and filling.
False breaks of technical levels
occur frequently
The tendency of Swissy to
overshoot
in extreme directional moves and
to generate false breaks of
technical levels means that
spike reversals appear frequently
on short-term charts.
Tick by tick movement slow
Strong movements
Jumpy movements
Often see any reversals on the
movement
fewer price jumps and smaller
price gaps
price jumps and technical levels
break occur by news/data releases
backing and filling is common
and substantial
directional move is stronger and
with interest
routine market fluctuations and
steady and active trading interest
sudden price movement
a rapid price movement
around 14% daily trading volume
short term trends
respects support & resistance
fewer false breakouts
price action highly directional (one
way traffic) on breaks of support and
resistance
Technical levels testing and
retesting takes long time
GBPUSD and USDCHF both pair
indicates breakouts and rejections
in EURUSD
retrace in short term movements
GBPJPY breaks important support
level short term SELL in USDJPY
spike reversal
USDJPY and EURJPY have similar
trading traits
speculative price movements if
same day trade if directional move
surprisingly strong UK data is
is high or low
reported, GBP/USD can take off on Jumpy movements
a moonshot.
tend to see minimal pullbacks or
backing and filling.
False breaks of technical levels
occur frequentlyThe tendency of
cable to overshoot
in extreme directional moves and to
generate false breaks of technical
levels means that
spike reversals appear frequently on
short-term charts.
USDCAD (loonie)
AUDUSD
you’ll need to closely follow
Bank of Canada (BOC) monetarypolicy developments,
current economic data, inflation
readings, and political goings-on
trajectory of the
Canadian economy is closely
linked to the overall direction of
the U.S. economy.
active currency pair for speculators.
the interest-rate outlook is especially
critical to the value of the Aussie.
No set formula exists to describe the
currencies’ relationship, but a
general rule is that when it’s a
USD-based move, Aussie and Kiwi
Aussie trading is also regularly
will tend to trade in the same
influenced by New Zealand economic direction as each other relative
data, but the flow is usually
to the USD.
more significant in the opposite
direction, where Aussie data will
Liquidity and market interest are
exert a larger pull on NZD
lower
prices, given the larger size of the
Australian economy. Still, when
trading Aussie, it helps to be
aware of upcoming NZD data,
because data surprises in NZ can
trigger sharp swings in the
AUD/NZD cross rate, with
implications for AUD/USD.
EUR/JPY is the highest volume of
the JPY crosses
the low-yielding JPY is sold and
higher-yielding currencies are
bought
When trading in the JPY crosses,
you need to keep an eye on
USD/JPY in particular, due to its
relatively explosive tendencies and
its key place as an outlet for
overall carry trade buying or
selling. Be alert for similar
technical levels between USD/JPY
and
the JPY crosses, as a break in
either could spill over into the
other.
disappointing Aussie data may see
AUD/USD move lower, which will
tend to drag down NZD/USD
Trading the EUR crosses
Liquidity and market interest are
lower
the result can be a negative USD
report paired with strong
Canadian data, leading to a sharp
drop in USD/CAD (selling USD
and buying CAD). At the
other end, strong U.S. data and
weak Canadian numbers can see
USD/CAD rally sharply.
Mixed readings can see a
stalemate, but it always depends
on the bigger picture.
Price action is highly event
drivenThe relatively lower level
of liquidity and market interest in
these currency pairs makes for
sometimes-difficult technical
trading conditions
NZDUSD
disappointing Aussie data may see
AUD/USD move lower,
which will tend to drag down
NZD/USD
Liquidity and market interest are
Price action is highly event driven
lower
The relatively lower level of
Price action is highly event driven
liquidity and market interest in these
The relatively lower level of liquidity currency pairs makes for sometimesand market interest in these currency difficult technical trading conditions
pairs makes for sometimes-difficult
technical trading conditions
Trading the JPY crosses
Reactions to Eurozone and
Swiss news or data are most likely
to be felt in the EUR crosses as
opposed to EUR/USD or
USD/CHF, whereas UK
news/data.is going to explode all
over GBP/USD and EUR/GBP
sharp move higher in the USD will
tend to see a higher EUR/CHF and
EUR/GBP,
while a rapid USD move lower
will tend to see lower
EUR/CHF and EUR/GBP