ECB Interest Rate is done in 2 parts, first with the rate decision at 7:45 am then followed with a press conference at 8:30 am.
The market is not expecting any changes today but since last rate decision the EURUSD pair moved from 1.1770 up to the current 1.2220 level, which is a strong sign that the EUR is well supported and highly unlikely that today’s meeting is going to change that, unless Draghi decides to surprise the market by being dovish…
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 the 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 movement 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 8:30 am EST – Highly recommended to follow along live! ECB WEBCAST OFFICIAL PORTAL
I’d recommend using 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 | January 25, 2018 | Forex News Trading
January 21, 2018 by Leave a Comment