Strategy Video: How to Trade the ECB Rate Decision

By DailyFx | June 04, 2014 AAA

Talking Points:

  • EURUSD is virtually guaranteed a breakout between 85 pip range and highest expected volatility in 2 years
  • The ECB rate decision is heavily expected to increase accommodation but there are a variety of options
  • Between rate cuts, unorthodox stimulus and other options; we discuss the different scenarios for impact

Join Christopher Vecchio as he covers the ECB rate decision live. Sign up for email reminders for this and other live webinars on the DailyFX Webinar Calendar.

Following its May meeting where the ECB left policy unchanged, the Euro tumbled. Heading into this meeting the market is heavy speculating on rate cuts and stimulus. Expectations of a significant market response for the single currency and EURUSD are exceptionally high. For traders, the important question is: how severe and drawn-out the impact of this event will be on on the European currency and capital markets. That depends on the options chosen. In today's Strategy Video, we look at the market's expectation for extreme short-term volatility, the scenarios available to the ECB and market impact expected amid the different outcomes.

Sign up for John’s email distribution list, here.

comments powered by Disqus
Related Forex Analysis
  1. EUR/JPY Technical Analysis: Former Resistance Now Support
    Forex News

    EUR/JPY Technical Analysis: Former Resistance Now Support

  2. EUR/USD under pressure, ready to resume downside
    Forex News

    EUR/USD under pressure, ready to resume downside

  3. Dollar Advances Across the Board as Sentiment Breaks, CPI Steady
    Forex News

    Dollar Advances Across the Board as Sentiment Breaks, CPI Steady

  4. EUR/GBP Technical Analysis: July Bottom in the Spotlight
    Forex News

    EUR/GBP Technical Analysis: July Bottom in the Spotlight

  5. EUR/USD Eyes 1.2500 With Bullish Reversal Signals Lacking
    Forex News

    EUR/USD Eyes 1.2500 With Bullish Reversal Signals Lacking

Trading Center