Thursday, July 5, 2012
For most of the week, the EUR/USD pair has been moving within a tight consolidation pattern, with a slight bearish bias, primarily due to institutions & hedge funds resting during the 4th of July holiday week and also over indecision concerning the outcome of the June Non Farm Payroll Report that is scheduled to be released on Friday. However, during today's trading session, we saw an unexpected pickup in volatility as 3 Central Banks intervened simultaneously to stimulate their economies. The PBOC (People's Bank Of China) eased their market by cutting the reserve ratio requirement by 31 basis points in an attempt to stimulate their economy. The BOE (Bank Of England) had also announced a plan to further ease markets by adding an additional 50 billion pounds of asset purchases to their current quantitative easing program. A few minutes after their announcement, the ECB had announced their plan to cut the interest rate by 25 basis points to 0.75% and also lower the deposit rate to 0.00%, in an attempt to remove the incentive banks would have in storing money at the ECB. This decision encouraged the sell-off in the euro during the NY Trading Session and the pair had fallen 175 pips from the session high at 1.2538 to the session low at 1.2363. In addition to this, there was also good US data that strengthened the greenback as well.
In today's V.I.P. webinar, we discussed the current price behavior in the EUR/USD pair and the fundamental news & events pushing market prices. We also placed a few live trades using the Slumdog Forex trading system.
Tuesday, July 3, 2012
In today's V.I.P. webinar, we briefly discuss the current price behavior in the EUR/USD pair and the fundamental news & events pushing market prices. We also place a few live trades using the Slumdog Forex trading system.