Nowadays You Can’t Trust The Markets, You Can’t Trust The Central Banks And Certainly You Can’t Trust Politics
Skerdian Meta • 1 min read
You see the forex market today? The USD rallied in the morning against all major currencies, then it extended the gains further around midday when the ECB held the monetary policy unchanged and now it is get smashed.
The market took the rate statement pretty dovishly since there were no hakish signals in it, as the market was expecting.
So, EUR/USD lost about 60 pips initially. But everything turned around when Mario Draghi started speaking. The poor guy tried to keep the Euro down and from what I heard, he didn't give any hawkish signals either.
His speech was pretty much in line with the ECB statement. But while the market took the statement very dovishly, Draghi's statement was seen as hawkish, so EUR/USD rallied.
That wasn't all, US politics are back in the game with Trump's businesses under examination from the special council. This is getting too far and the USD is getting hammered. This is how the market behave nowadays, so we have to adapt.