ECB Interest Rate is done in 2 parts, first with the rate decision at 7:45am then followed with a press conference at 8:30am.
Market is not expecting any changes today but there are talks of Draghi announcing some kind of bond purchase reductions (tapering), although this may just be speculating from some aggressive euro-bull economists, market will definitely over-react if there is even a discussion over QE adjustment today; the key is to pay close attention to the press conference (webcast) and try to follow it as best as you can.
Here´s the forecast:
7:45am (NY Time) EU ECB Interest Rate Decision Forecast 0.00% Previous 0.00%
The Trade Plan
However, in the unlikely event that ECB surprises the market by cutting rates again, then expect market to go into a selling frenzy and we should jump in immediately on a spike trade because no matter what the slippage or spread is, we will end up making positive pips. Of course, if ECB decides to keep rates unchanged to as expected at 0.00%, then we should see relatively no change in the market as this lack of move is expected… Please follow the recommendations above ONLY if ECB surprises the market.
For more information on my trading methods, please read: http://www.currencynewstrading.com/how-to-get-started-with-news-trading/
Here´s the link to watch the Webcast Live at 8:30am EST – Highly recommended to follow along live! ECB WEBCAST OFFICIAL PORTAL
I’d recommend to use the Recommended Pairs from above as they are based on my CSM, which should provide the best combination of currency pairs to trade based on better/worse news… of course, you can also trade the default pair: EURUSD.
EU ECB Interest Rate | July 20, 2017 | Forex News Trading
July 16, 2017 by Leave a Comment