How does the market react in front of the news? Probably most of you have heard that markets go on the same way as information. This is not different to what reality tells us, as financial markets consider on every minute that news are the ones that show financial future.
One of the news that has been on newspaper covers these last days was crude raise. Crude price has a raising trend at the moment, and has broken new records with 99 dollars per barrel. The effect of raw materials appreciation on foreign currency has been immediate and as we are used to see, the currency in the worst situation is the dollar, that falls to historical levels in some of its relations.
As we see there are news at forex that should be considered as they affect directly on foreign currency exchange rate.
Another new that you should know how to interpret it, is that many times falls at the stock martket makes the opposite reaction on forex foreign currency, as both are completely different. For example, news on the fall of the exchange rate at FED caused a general fall at the stock markets and an the opposite happened to forex, principally on the carry trade pairs (operation in which an inverson or trader borrows currency at low exchange rates to sells it in another currency at higher exchange rates).