The claim that "all USD news is coming good" should be treated cautiously.
The claim that "all USD news is coming good" should be treated cautiously.
Although the US dollar may have received good news today, January 11, 2024, the effects on EUR/USD and USD/JPY may be complex and dependent on a number of variables:
Effect on the EUR/USD exchange rate:
Strength of USD news: The impact of positive USD news will depend on its particulars and size. The euro could be severely weakened by big positive news, such as robust jobs data or dovish expectations from the European Central Bank (ECB).
Market expectations: The news may not have as much of an impact if it was mostly expected by the market. Strong news out of the blue could spark a broader movement.
Global risk appetite: Even good USD news might not have a negative impact on EUR/USD if there is a high global risk appetite. On the other hand, risk aversion might make the euro weaker.
Effect on USD/JPY:
News particular to Japan vs. USD strength: Although a strong USD usually helps USD/JPY, JPY can also move independently in response to news special to Japan, such as economic statistics or monetary policy.
Carry trade sentiment: If traders become more willing to take on risk, this might lead to more gains in the USD/JPY. Positive USD news could be muted, though, by increased risk aversion.
Present Market Situation:
Current trends in EUR/USD and USD/JPY: Before evaluating the news impact, take into account both pairs' current momentum and technical picture.
New data from Japan and Europe: Future economic reports from Japan and the Eurozone may have an impact on their individual currencies, which may then interact with the USD news to decide the overall effect.
Overall, while EUR/USD weakness and USD/JPY strength may benefit from favorable USD news, the real impact will depend on a number of variables, so it's important to conduct a comprehensive analysis of the situation before making any trading decisions.
For market analysis and to stay current, try these resources:
Remember that the market is dynamic and that unanticipated circumstances can always alter the course. When choosing an investment, always make sure you have done your homework and are using appropriate risk management techniques.