Wednesday will be among certainly the most volatile, with the release of the American "retail sales", at 08:30.
MARKET INFLUENCE
Each of these dates, leads in the respective currency pair, to high / moderate volatility.
> Events that make the overall market volatile are mostly related to the USD.
= This is due to the fact that the USD has a position as an indirect world currency through global acceptance and thus has significant influence on the other currency pairs / economy.
To use an example to explain the influence of the USD on other currency pairs, let's look at the DXY (USD index).
The DXY is composed of the pairs: EUR (57.6%), JPY (13.6%), GBP (11.9%), CAD (9.1%), SEC (4.2%) + CHF (3.6%)
When a positive metric is published for the USD = its value rises.
= The pressure on the currencies in the DXY basket increases. = Thus they are "negatively" valued by traders. = Sell-off
In summary, the higher the country's opinion on the global economy, the greater impact it takes on the overall market.
> Feel free to share in the comments, about the impact of this week's appointments.
> Sharing your perspective allows each of us to improve.
If this explanation has added value to you, I would be very happy to receive a rating.
Thank you and happy trading!
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