The ECB monthly statement and press conference was scheduled for today. The Statement was released at 11:45 and the press conference of the ECB president Draghi started at 12:30. With the extreme steps that the ECB took on March, no one expected any additional measures this time. So the statement was released and everything remained unchanged; the interest rates didn´t change and the monthly purchase of assets was around 80 billion Euros, as promised in March. Then came Draghi with his live conference. The market´s attention was concentrated on him.
EUR/USD jumped 100 pips up then tumbled 130 pips down
Overnight the Euro declined about 100 pips, probably because the market feared a dovish press conference from Draghi. But, during the last few hours leading to the conference and during the conference the Euro jumped back 100 pips. Draghi didn´t say anything important enough to move the market but EUR/USD reached 1.14. Then the conference finished and the Euro dropped more than 130 pips. So, what happened? Nothing really, just forex traders doing their job, trading. They pushed EUR/USD 100 pips up because there were no dovish comments then after filing at 1.14 they just decided to close the positions off and the decline began. It worked well for us because we opened a long term sell forex signal near the top of this move and closed it for more than 100 pips down. Thanks Draghi, or the market whoever it was.
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