Mixed market reaction to FED

One of the most anticipated market events came today and market’s reactions were mixed. As expected Federal Reserve kept interest rates unchanged. Dollar initially fell, then rose and then dropped again. This kind of reaction must have cost a lot of market participants a lot of money. Those that tried to trade in both directions must have lost money. Of course, these kinds of things do happen. One has to be very patient and not to give in to despair when a streak of losses occur. It is far more important to follow your system and trade with discipline. 

Two key events are in the horizon. One is Bank of England rate decision that is due tomorrow at 11:00 GMT. I have intentions trading British Pound against one of commodities, possibly New Zealand currency. The same can be said about the other event: European Central Bank interest rate decision coming at 11:45 GMT. I will probably be looking at eur/nzd pair to make a long or a short trade. Non Farm payrolls will surely be the last risk event this week. I see gold as of particular interest for this event. It has risen quite a bit in the last month and will probably correct itself to make new lows in the coming weeks. Let us see what happens tomorrow though. Do not overtrade!


I also suggest you reading my post: http://forex-news-trading.blogspot.com/2013/08/ultimate-guide-to-successful-day-trading.html

Week of Central Banks

This week is probably the most important from the financial point of view in the month. I hope you know why. Three major banks are going to release their interest rate decisions. It starts with Federal Reserve tomorrow at 18:00 GMT and goes on to Thursday with Bank of England at 11:00 GMT, followed by European Central Bank at 11:45 GMT. Markets could start moving sharply even before the FED as Gross Domestic Product of US will be announced on Wednesday at 12:30 GMT. However, do not be too much involved in that. I would recommend closing your positions before FED announcement. It may reverse anything.

It could be the key event of the week as ECB will not have press conference meeting following its’ announcement this time (it usually has). And again, the next day the picture might change again when Bank of England and ECB will publish their decisions. So, have light positions or even close them tomorrow. It is very risky to head into these kinds of events fully loaded. I experienced it myself on a number of occasions and do not want to repeat the same mistakes again and again. It is good to learn to take advantage of these kinds of events, not to lose money on them. Hope that helped!

Key Forex releases this week

Hi, fellow traders. This week is very rich in Forex events. You can expect a lot of volatility and choppy price action as well as huge moves in various currency pairs before and after the releases. Something has already been released. Basically (Japanese) Tankan Large Manufacturers Outlook, which can slightly better than expected (10 actual versus 7 expected). That came at 23:50 this Sunday. However, Japanese Yen continued falling. It tells me that the bearish bias is very strong in Yen pairs. What are other key events for the week?

Monday

China – Manufacturing PMI (came as expected 50.1 at 01:00 GMT)

EU – Euro zone Consumer Price Index (coming at 09:00 GMT) 

US – ISM Manufacturing (coming at 14:00 GMT)

Tuesday

AUD – Reserve Bank of Australia Bank decision (coming at 04:30 GMT). Australian dollar might recover (at least short term). 

No key Forex news on Wednesday

Thursday

GBP – Bank of England Rate decision (coming at 11:00 GMT). It will have huge impact on British Pound pairs. I expect major moves in gbp/chf and eur/gbp and a possible reversal in gbp/usd pair. Traders will also be looking at BOE Asset Purchase target coming at the same time. 

EUR – European Central Bank Rate decision (coming at 11:45). It will probably be the most important event of the week. Need to see if they have a press conference after that and when. 

Friday

USD – Unemployment rate and change in Non Farm Payrolls (both coming at 12:30). The second most important event of the week. Hope to see currencies flying after the release.

CAD – Canada Unemployment rate and Net Change in Employment (coming at 12.30). Canadian dollar pairs will be hit. 

Ok, I guess that is it for the week. We need to wait for the first releases to see what happens. I will update on that tomorrow.

Important macroeconomic events this week

Hi. This week will see some important key events that can have significant impact on financial markets, especially Forex this week.

Monday:
USD  ISM Manufacturing (at 14:00 GMT).

Tuesday:
AUD  Reserve Bank of Australia rate decision (at 04:30 GMT). It may reverse short term bearish commodity currency downtrend.

Wednesday:
AUD Gross Domestic Product (at 01:30 GMT).
Euro zone Gross Domestic Product (at 09:00 GMT)

Thursday:
GBP Bank of England rate decision (at 11:00 GMT)
EUR European Central Bank rate decision (at 11:45 GMT)

Friday:
USD Change in Non-Farm payrolls (at 12:30 GMT)

Get ready for the week and see you tomorrow with some ideas on news trading.