ECB impact on GBPUSD
ECB Impact on GBPUSD On 20 June, I wrote about central bank power and the impact the ECB can have on the currency value. This was in evidence again this week on Thursday, when Mario Draghi, the head of the ECB, stated they would do “whatever it takes” to save the Euro. I have chosen to illustrate the impact of his speech on GBPUSD, rather than the Euro. The 4 hour candle on EURUSD was 199 pips in range. The candle length for Cable was 232 pips. In either case, very significant movements. One of the “excuses” for weak GDP figures in the UK has been the turmoil in...
Read MoreCentral bank power
When it comes to trading currencies in the forex markets, there is no-one to fear more than a central bank and comments made by them. Right now, the Federal Reserve (FED) are in committee, determining whether to intervene in the US economy. If they do, they will decide how and when to do it. In a market where trillions of dollars are traded daily, few institutions can affect the value of a currency as much as a central bank. An example earlier today is sterling (GBPUSD) as the minutes from the Bank of England meeting were released. The minutes had more impact on the currency than the actual...
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