For each major statistical, ProfesseurForex.com publishes a special article aimed at helping you to practice trading news. We remind you that you can see the results of real-time statistics at the time of their publication on our economic calendar.
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The event : The meeting of the ECB in the month of October
Consensus forecasts, the preceding numbers and impact usual
The decision of ECB is split in two parts, with at 13: 45 the announcement of the rate, and then the press conference of Draghi at 14: 30. The consensus anticipates a reduction in QE starting in January, but the terms remain uncertain. A low consent, however, seems to be emerging for an extension of 9 months at a pace of 30mds € per month.
If the meeting of the ECB generates the volatility, it will therefore be rather at 13: 45 this time with the press release, instead of 14: 30, usually when the president of the ECB will begin to express themselves. The speech of Draghi, however, could strengthen or weaken the movements observed following the release.
To help you analyze live the press conference of the ECB, don’t forget the LIVE ECB PFX accessible from our home page from 14: 30.
On what pairs trader this event ?
*Council in the event of a surprise hawkish : Buy EUR/CAD
*Council in the event of a surprise dovish : Selling EUR/USD
Why these currency pairs ?
Our experience in the trading of news and the statistical indicators that we use internally based on historical studies of volatility help us to identify the currency pairs most sensitive to the trading of news as a function of the different possible cases and the time period. It remains of course possible to trade the event on all the pairs related to EUR.
Warning on the trading of news on the Forex
Attention, trading news is for traders warned ! Indeed, the consecutive movements to news are often violent, and the technical phenomena of retracement complicate the positioning.