Central Bank Week. We are Withdrawing from our long AUDJPY taken 75.00-78.00
04/04/11 19:08
Hello Traders;
We have an interesting week ahead with four central banks rate announcements. It is important that traders become familiar with the characteristics, the positioning and the patterns of the central bank statements, as this can guide your trading decisions around these key events. The RBA, for example, are typically more direct in their policy intentions, so this often lends some support to a view on a trend we may trade.
The FOMC's Lockhart and Evans but the market had little reaction to their statements. There is clearly keen debate within the Fed on potential normalization of policy and markets have been reactive to recent comments from other members. In order to see fundamental dollar support going forward we look to changes in tone from some of the less hawkish members including Bernanke (who will speak later today, although the subject is not monetary policy). Tomorrow, we have the FOMC minutes from the previous months meeting which should provide colour on the FOMC's general stance. As we discuss in almost every Pro Traders Club session, the FX market is currently driven by interest rate seeking flows. You can learn all about this in the course titled, "Inside the Banks."
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We have an interesting week ahead with four central banks rate announcements. It is important that traders become familiar with the characteristics, the positioning and the patterns of the central bank statements, as this can guide your trading decisions around these key events. The RBA, for example, are typically more direct in their policy intentions, so this often lends some support to a view on a trend we may trade.
The FOMC's Lockhart and Evans but the market had little reaction to their statements. There is clearly keen debate within the Fed on potential normalization of policy and markets have been reactive to recent comments from other members. In order to see fundamental dollar support going forward we look to changes in tone from some of the less hawkish members including Bernanke (who will speak later today, although the subject is not monetary policy). Tomorrow, we have the FOMC minutes from the previous months meeting which should provide colour on the FOMC's general stance. As we discuss in almost every Pro Traders Club session, the FX market is currently driven by interest rate seeking flows. You can learn all about this in the course titled, "Inside the Banks."
Read More...