WHAT MOVES THE MARKET IN THE SHORT TERM?
WHAT MOVES THE MARKET IN THE SHORT TERM? For fundamental or technical traders, the importance of economic data cannot be underestimated. Even though there are many peo ple who claim to be pure technicians, through my years in the FX market, I have to come to realize that nearly everyone will factor economic data into their trading strategies. A good technician who focuses on range trades, for example, may choose to stay out of the markets on the day that a very market-moving number such as nonfarm payrolls (NFP) will be re leased. A technical breakout trader, by contrast, may want to trade only on days when there is important economic data to drive some sizable price ac tion. Incorporating fundamental analysis is particularly important for peo ple who trade automated systems, because turning on or off their strategies based on incoming economic data can potentially have a big impact on the overall performance of the trading strategy. Fundamental traders natura