Although the number of articles in financial media increases market transparency, investors should still be aware that unseen trading news and investing news can have a significant impact on price trends.
Hedge funds and central banks have a huge spending power, which means they have a significant influence on the markets. These market participants can invest trillions of dollars to reverse or deepen market trends. Sometimes, they confuse millions of traders by the results.
These heavyweights have a lower news share than other market news such as earnings and macroeconomic announcements. The central banks tend to make complex statements about market activities. Hedge funds are not publicly listed entities, so the market investment from this sector is less transparent than other factors.
The bottom line is that traders can be caught off guard by the news.
The USD was particularly volatile in current economic conditions of diverging monetary strategies between the Bank of Japan(BoJ), and the Federal Reserve. It reached such high levels versus JPY that it forced the BoJ to intervene to boost the Yen.
These types of currency interventions aren’t…