I’ve made the case before that trying to provide reason behind this price movement for why a financial instrument (currency pairs, indices etc) moved the way it did in a short period of time is impossible. It could be argued that in certain cases, at best, it’s an educated guess. But most of the time it’s just an exercise in filling up web pages or TV airtime.
You might know that a couple of days ago, on March 30th, 2015, the former Federal Reserve chairman, Ben Bernanke, started his own blog. As it happens, on that day we also had a seven-year high in Chinese stocks and a rally in US stocks – 1.5% for the Dow and more than 1% for S&P 500 and NASDAQ. There was a very funny tweet in my twitter feed that perfectly mocks this attempt to always find explanations for price moves: