You are using an outdated browser. Please upgrade your browser to improve your experience. An interesting fact is that one of the most intense trading sessions for EURUSD in terms of market volatility occurs on the day the European Central Bank has its official Press Conference. This is why I am going to take it from scratch and explain how to approach the ECB Press Conference and how to adapt your trading strategies.
In the first Thursday of every month at This event tends to be overshadowed by the ECB Press Conference held 45 minutes later as the rate decision is often priced in the market.
The usual effect is the following, an actual value higher than the forecast is good for the EUR. As an example, right now the rate is 0. If ECB decides to raise the rate to 0. Vice versa, if the rate drops, EUR will be cheaper to have in possession, so EURUSD fall as US dollar will be regarded as being stronger than the EUR. As I mentioned earlier, 45 minutes after the ECB rate decision, the ECB Press Conference takes place with the ECB president Mario Draghi being the speaker.
This is the primary method the ECB uses to communicate with investors regarding monetary policy.
It covers in detail the factors that affected the most recent interest rate and other policy decisions, b eurusd binary option strategy as the how did equiano earn money economic outlook and inflation.
Most importantly, it provides clues regarding future monetary b eurusd binary option strategy. So, you should pay attention at his speech and the selection of words Mario Draghi uses.
The press conference is about one hour ling and has two parts.
60 second binary options trading strategy eur usd - WOC Ecuador WOC Ecuador
First, a prepared statement is read, and then the conference is open to press questions. The questions often lead to unscripted and unexpected answers that create heavy volatility. The key phrases Mario Draghi usually use in his speech and you should pay attention at are forex rsi chart trading using inflation, unemployment and economic earn money student india A more hawkish tone than expecte d is good for the EUR, so 1 hawkish tone means Free ppt templates for stock market goes up and a dovish tone sends the EURUSD down.
A hawkish tone is usually associated with references made about a moderate to strong state of the economy, a stable unemployment rate and that inflation starts to pick up. For the dovish tone is the opposite situation. Also, you will be able to adjust your positions during the press conference as one unexpected answer could come and in this way you will limit your potential losses. I am ending this article wishing you profitable trades and beware the markets mood.
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