A little insider know-how goes a long way. One hot tip is to follow interest rates for currencies you want to trade. Interest rates directly affect currency. So traders get excited when there are big rate announcements. Thursday 8th September gives us two biggies to get Forex traders going with the Euro.
12.45pm GMT European Central Bank Minimum Bid Rate
Also known as ECBMBR (just kidding – try saying that after a few swift ones) the minimum bid rate is how much the Central Bank charges banks in member states to borrow money. It’s been at 0.00% for a very long time but it’s a key rate for the EUR/USD pair as it has a knock-on effect on other banking interest rates across the Euro-zone. With the recent G20 summit, a change in the rate is a slight possibility and a cut would send the markets into a selling spree. But far more likely is no change and little movement in the markets… for 45 minutes anyway.
1.30pm GMT ECB Press Conference
Heads up, people. This is where the action happens. When the ECB big boss makes the official statement about the earlier rate announcement, the press get the chance to ask questions. Traders have the conference running live poring over every nuance of the chief’s answers in case of any market-changing revelations. It can be common to see a spike in trades during the conference. The trick is deciding which way those trades will go.