EoB & ECB

There seems to be a lot of talk about the the announcements being made on Thursday 9th Feb by the Bank of England and the ECB

How wll this affect the forex market as it seems as though the whole of the market is in anticipation for lots of movement and what should this newbie do to benefit from it

3 words.

Watch and learn.

Don’t think the ECB one will produce much fireworks. They’re not going to cut rates most likely. The press conference after might throw up some volatility but Draghi probably won’t want to say too much about future developments until things become clearer with Greece. They’ve also got the LTRO in a few weeks and they’ll want to see how that plays out before properly deciding on the path of future cuts. Last time out Draghi mentioned substantial downside risks to the EZ economy - has the market pricing in a further cut in March after the last cut in December. Since then there’s been a few positive developments though things look pretty ugly still. If Draghi drops the substantial in his speech market participants might take that as a signal that a rate cut in March is less likely which could be bullish for the Euro. I think they’re not going to change their language much though and will just wait and see. Hard to say though how price will go - I’m staying out until things work themselves out. There’s easier opportunities out there than trying to wager how a rate cut press conference will go.

Thanks for your help Pipbandit as a newbie a lot goes over your head but your explanation helped me quite a bit, and you were right the market didn’t seem to react as I thought it would

Nice post, Bandit … especially the two quoted lines.

To me, a forex economic calendar’s main use is knowing when [B]not[/B] to trade. News impact on price movement is so hard to predict that it simply isn’t worth the trouble and the risk.

O.