A Potential Trading Opportunity Awaits: The European Central Bank Announcement
Next released on 16 July 2020 at 1:45pm CET
As with most major news announcements, the largest moves often occur when the news is different from what the market expects. However, even when the news is in line with expectations, there is still the potential for strong market movement. Consider your position ahead of the next ECB announcement.
The ECB Announcement can have an immense impact on bonds, currencies, and equities through changes to the interest rates and the use of quantitative easing.
Rising interest rates or decreasing quantitative easing, markets tend to slowdown creating a bearish market.
Low interest rates and an increase in quantitative easing are the signals of a bullish market.
In the wake of the ECB Announcement, the subsequent press conference creates another trading moment.
