8:30am (NY Time) EU Trichet Press Conference
ACTION: EUR/USD BUY (Hawkish) SELL (Dovish)
Trichet will deliver a statement along with a pretty-lengthy Q&A session after. This press conference is usually very volatile and the market is always looking for Trichet’s tone for future ECB policies. If Trichet is hawkish, then we will see EURO gain, if Trichet is dovish, then we will see EURO losing against all other currencies.
If you have never traded this release, it is better to stay out of the market. Wait until around 9:30am then follow the trend. If Trichet is hawkish, EUR/USD will gain throughout the session and may even carry over to Friday. Therefore there are plenty of opportunities to trade after the market has already established itself.
Trichet’s press conference is usually done in 2 parts, the first part is a written statement which various newswire services will release headlines immediately at 8:30am, then Trichet will read through the statement; 2nd part of the press conference is a Question and Answer session where Trichet will take questions live from onsite media members. This part is highly unpredictable as Trichet may slip up and cause the market to reaction. Usually Trichet is pretty good to maintain a neutral stance, but sometimes market may read too much into his statements and move excessively. So if you have never traded this event before, maybe it is best to stay out as the market could react bullish to his first sentence and turn the opposite at his second sentence…
UPDATE: Trichet was rather hawkish early on as he showed some rare optimism in his speech. However, it was too risky to trade before his Q&A session, so I stayed out of the market. All in all a good day indeed.
Related posts:
- ECB Trichet Press Conference 10/08/09
- ECB Trichet Press Conference 11/05/09
- ECB Trichet Press Conference 09/03/09
- ECB Trichet Press Conference 12/03/09
- ECB Trichet Press Conference 06/10/10 – Mininum Bid Rate Decision
- Detailed Analysis For ECB Trichet’s Interest Rate Press Conference
- Forex Analysis – Trichet Press Conference – 07/07/11
- ECB Minimum Bid Rate Decision 10/08/09
- ECB Minimum Bid Rate Decision 09/03/09
- Forex News Trading EU ECB Interest Rate Decision 05/05/11
{ 2 comments… read them below or add one }
hi henry.pls how can i get access to the video recordings of how u trade these news events. do u offer live access to ur trading room or u only post the video recordings later? i hope its not wrong 4 me to post this here
No it’s ok to ask questions here. I’ll open the trade room sometime in Sept. as I am still adjusting to it right now.