ECB (European Central Bank) will be rendering its rate decision today, and it will have a pivotal short term impact in the Euro dollar. However, it is widely believed that ECB will keep rate unchanged at 1.50%… Here´s the forecast:
7:45am (NY Time) EU ECB Rate Decision Forecast 1.25% Previous 1.25%
The Trade Plan
However, in the unlikely event that ECB surprises the market by cutting rates 25 basis points or more, then expect market to go into shock 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 leave rates unchanged at 1.25% as expected, then we should stay out of the market.
For more information on my trading methods, please read:
Here´s the link to watch the Webcast Live at 8:30am EST.
Also it is important to note that most analysts agree that ECB may keep rates unchanged for the rest of 2011 in light of recent events.