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Question on news impact for $EURUSD and smaller pairs
Hey everyone, fairly new here, been trying to get my head around how news events really play out beyond the initial spike. For $EURUSD, it seems like the big news items (CPI, NFP, Fed statements) can often create a sustained move for hours, sometimes days, depending on the surprise. But when I look at some of the less common pairs I'm interested in, like $AUDNZD or even $USDSEK, the economic releases for those countries seem to have a much shorter-lived impact, often just a quick whipsaw and then back to the range. Is that just a function of lower liquidity and smaller participant pools for the minors/exotics, making the moves less sticky? Or am I missing something fundamental about how different market structures absorb information?
1 comments · 1 points
It makes sense that less liquid pairs like AUDNZD wouldn't sustain moves as long; the depth of the market just isn't there to absorb the same kind of momentum. How do you factor that into your trade management, knowing the moves might be more fleeting?