This information affects the market in many ways but let's stick to what I think has that impact that can't be looked over.
First off, it makes the market extremely volatile and the market can move into any direction based on the information released.
We in turn have a market structure that I stress is so important to be understood refere to the following:
Imagine you see a house 🏡 for example this is let's say XAU's house and XAU has a friend like a visitor shall we name him USD.
They kick it on the front porch when USD has mood swings or isn't feeling well the vibe at home changes but it's still XAU'S house so today USD is feeling great better yet the economic and NFP release represents a positive outlook.
This in turn means that potentially USD has gained more strength in XAU's house.
Weakening him, that's where we experience a drop in the xauusd market pair.
I feel it's better trading xauusd based on the fact that gold value barely moves and everything is mostly determined by the value of the dollar.
In simpler terms when the American dollar gets stronger the pair falls and when it becomes weaker it then rises.
So the news 📰 is fun huh? 😉
