We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Japan total bond issuance is said to rise above 200 trillion #Yen -BBG
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.61%, while traders in US 500 are at opposite extremes with 75.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/e9Wte2ys3d
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/4AzMu1F1Ph
  • My trading video for today: 'S&P 500 Can't Extend a Bullish Gap, Dollar Drop Cues $USDCAD, $NZDUSD Breaks' https://www.dailyfx.com/forex/video/daily_news_report/2020/05/27/SP-500-Cant-Extend-a-Bullish-Gap-Dollar-Drop-Cues-USDCAD-NZDUSD-Breaks.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/oSB23nRkfE
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.01% 🇨🇦CAD: -0.05% 🇨🇭CHF: -0.13% 🇬🇧GBP: -0.15% 🇦🇺AUD: -0.19% 🇪🇺EUR: -0.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/N60kYwUinJ
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.86% US 500: 0.85% FTSE 100: 0.42% Germany 30: 0.42% France 40: 0.24% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/511qP0ytab
  • (Sentiment Weekly) Signals from IG Client Sentiment hint that the FTSE 100 and S&P 500 could have room for weakness ahead as the CAC 40 attempts to climb towards key resistance #SP500 #FTSE100 #CAC40 - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/05/27/FTSE-100-SP-500-CAC-40-Forecasts-Analyzing-Signals-in-Positioning.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/5yVyQF6Jix
  • Japan compiles new stimulus package of 117.1 trillion #Yen, new spending in second extra budget is 31.9 trillion Yen -BBG citing relevant document
  • Emerging market currencies haven’t been treated equally by the effects of global contagion, even if most have suffered to some degree. However withdrawal of investment flows could hit them all. Get your market update from @DavidCottleFX here:https://t.co/QzNoNYgMgP https://t.co/jTtYhKosIa
  • China's #Yuan falls 0.28% to 7.1560/USD which is the weakest since September 2019 -BBG
ECB Decision Today as Contentious, Important as FOMC Next Week

ECB Decision Today as Contentious, Important as FOMC Next Week

2016-03-10 01:42:00
John Kicklighter, Chief Strategist
Share:

Talking Points:

• General themes like risk trends has given way to targeted volatility from scheduled event risk

• The RBNZ rate decision triggered a dramatic New Zealand Dollar plunge on a surprise rate cut

• Is the RBNZ impact evidence for how the market will respond to today's ECB decision or next week's FOMC?

Sign up for a free trial of DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!

Monetary policy is looking to revive heavy moves in the FX market. We are heading into a round of critical central bank policy meetings that will carry into next week and find its zenith in next Wednesday's FOMC event. The serious waves weren't expected to start until the upcoming ECB meeting announced its latest effort Thursday, but the RBNZ triggered volatility early. The Reserve Bank of New Zealand unexpectedly cut the benchmark lending rate by 25 basis points. Given that was seen as a meager 28 percent probability by the market, the reaction was abrupt - a near instant, two percent drop from NZDUSD. As remarkable as this reaction was, its follow through will be limited to certain pairs and circumstances. In contrast, the upcoming ECB rate decision can move the Euro for much longer, larger moves. What's more; it can carry deeper implications for the broader financial system as the world's most accommodative, major central bank. How should we prepare for this charge in event risk and volatility, we discuss that in today's Trading Video.

To receive John’s analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.