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Do Central Bank pronouncements matter to a trader?


Mercury

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With the FOMC coming up at 18.00 today are people looking for this to help them place a trade or just adjusting to compensate for likely volatility?  Some people like to ride the pre and post major announcement volatility but I think that is a mugs game.  Common sense seems to work less and less with these CB issuances.  Take Draghi's last 2 (December and recently).  He is trying to devalue the Euro to help Eurozone trading right?  So he drops the interest rates (now gone negative) and increases QE.  The Euro should fall right?  But look what happened, in both cases the Euro spiked sharply.  Maybe it will begin a steady decline now but for sure the place to avoid making a trade is around the CB pronouncements.  I wonder what Janet will have for us?  I'm steering clear until the dust settles and my analysis brings things into a sharper focus.

 

Here is the EURUSD chart:



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