Forex Fundamentals

So yesterday we saw some massive price movement on the CAD. The USD?CAD pair nearly gained 450 over the past two days, with the movement accelerated after the BoC decided to cut 25 basis points. A move which could be argued to have been anticipated due to the oil price crisis. The BoC also cut its average 2015 growth outlook to 2.1% from 2.4%.


So the big day has finally arrived where Mario Draghi will announce what exactly his QE program entail, and just how extreme it will be. There is a lot of speculation on the news, but honestly no one knows what Mario will announce today. Traders are on edge, and if traders fear an aggressive Euro bounce, many of them might exit the market which could have dramatic rallies across all EUR pairs. The SNB decision to abandon its aggressive policy may be remembered as the first time a major central bank “blinked” in the face of clear market pressure. If you plan on trading any EUR pairs today it would be wise to keep your eye on your trade before the announcement begin and have you SL levels adjusted.

Risk events for the day


2:45pm                 Minimum bid rate

3:30pm                 ECB Press Conference


3:30pm                 Unemployment Claims

6:00pm                 Crude oil Inventories

Back Back to top

Forex Risk Warning