Posted Under ” Fundamental / News Price Action “
ECB Summary So far this Year for 2011
Since the start of the year ECB have ramped up their hawkish stance on policy by dropping the appropriate buzz words to describe rates.
Going back to the start of the year, the ECB announced that they would “monitor very closely” in January and February before signaling “strong vigilance” in March.
In January, they introduced the statement that they see short-term upward pressure on overall inflation, and at the same time “very close monitoring is warranted.”
In March, the ECB signalled an April rate hike by announcing that “strong vigilance” was warranted on upside inflation pressures.
The Following month the ECB hiked interest rates in April to 1.25% from 1.00%.
Last month, the ECB signaled that they will “monitor very closely” the upside risk to price developments. The policy stance was described as “accommodative”.
Trichet latest comments for June of “Strong vigilance” would indicate a hiking of rates next month.
It is a phrase used repeatedly between 2005 and 2007, typically one month before it raised rates, although not always .
From a Day-trading Perspective Price reaction was pretty impressive with quite Erratic price reaction as Many Traders were caught of guard with their pants Down from the Get go of the ECB press conference .
If you,re new to trading or the blog please also read these two short pieces below for further insight . It is essential to have a basic concept of Buzz Words to approach and do battle within the Fx market even if you are a purely Technical Trader like myself it is essential to be prepared even if Fundamentals are not your forte .
ECB’s buzzwords/phrases Planned and unplanned announcements
” Fundamental / News Price Action “
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