{"id":10594,"date":"2010-06-28T08:15:25","date_gmt":"2010-06-28T12:15:25","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=10594"},"modified":"2010-06-28T08:15:25","modified_gmt":"2010-06-28T12:15:25","slug":"how-the-world-cup-can-affect-currency-trading","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/06\/28\/how-the-world-cup-can-affect-currency-trading\/","title":{"rendered":"How the World Cup Can Affect Currency Trading"},"content":{"rendered":"<div><strong>By Anton Eljwizat <\/strong>&#8211; The  World Cup has begun and trading rooms the world over have caught  football fever. If past experience repeats, trading activity may become  more languid over the next few weeks, especially in the European  markets, as traders focus on the matches and less on risk-taking. In  essence, many people won\u2019t be trading as much unless they\u2019re forced to  by news or price movements themselves.<\/div>\n<p>Some analysts noticed that historically  during the month of the World Cup volatility and volume take a holiday.  In a few weeks, however, we may see some sharp movements as according to  some traders the markets will reflect on the \u201cslow economic data\u201d of  the current period.<\/p>\n<p>The impact of the World Cup is not all fun and games. A study by  Dartmouth\u2019s Tuck School of Business indicated that the \u201cmood\u201d of a  country is affected by a loss in the World Cup to such a degree that  following the loss, the local spot market in that country declines. On  average, stock indices and CFD markets decline around 0.40% after the  national team loses in a World Cup game. However, the same study  concluded that there is a lack of evidence showing that stock indices  rise when a team wins.<br \/>\nIt\u2019s also possible that some traders\u2019 eyes are glued to the TV during  important games, decreasing trading volumes.<\/p>\n<p>Meanwhile, the South African rand has continued to gain on  international currencies. The World Cup has become more expensive for  foreign visitors. The South African rand has not been this strong since  before 1994.<\/p>\n<p><strong><em>Forex Market Analysis<\/em> provided by <a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\">Forex                  Yard.<\/a><\/strong><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading Foreign Exchange carries a high level of risk and                  may not be suitable for all investors. There is a       possibility      that     you   could sustain a loss of all of your       investment and      therefore  you     should  not invest money that  you      cannot afford to      lose. You  should  be    aware of  all  the    risks   associated with   Foreign    Exchange  trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Anton Eljwizat &#8211; The World Cup has begun and trading rooms the world over have caught football fever. If past experience repeats, trading activity may become more languid over the next few weeks, especially in the European markets, as traders focus on the matches and less on risk-taking. In essence, many people won\u2019t be &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/06\/28\/how-the-world-cup-can-affect-currency-trading\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;How the World Cup Can Affect Currency Trading&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-10594","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/10594","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=10594"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/10594\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=10594"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=10594"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=10594"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}