Several minutes after the above, I was convinced price was going down so put in a pending sell. My news reader didn't show an event coming up but one appeared on the Oanda chart just a couple minutes out which surprised me. I canceled immediately so as not to get caught in the news craziness. Then news hit and price rode a train straight off a cliff. I was going to trade some more once it calmed down but the craziness continued and I decided to call it a day.
2 comments:
Trichet's press conference is always a market moving event, up there with the NFP data for EUR/USD. The actual ECB rate announcement (which happens 45 minutes before the press conference) is generally not that impactful. The reason is that Trichet has most likely already signalled what the rate change is going to be at his last press conference (which the market will have then priced in over the past few weeks). The press conference then becomes the focus as Trichet will use various phrases to signal what the most likely course of action is going forward ("strong vigilence" equals hike at next meeting; "monitor very closely" equals potential hike at meeting after next). Today Trichet used "monitor very closely" so a July hike is likely, when the market was pricing in something in June so down we go...
Interesting, thank you.
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