Market Brief March 8th: ECB interest rate decision
Ether – the second largest cryptocurrency by market cap is now down more than 5% is just 24 hours. Weakness in Ether starts to accelarate and price has dropped below $750. If we see another day of bearishness, price action may seriously plunge and break through levels. The fundamental reason behind what’s happening comes largely from looming potential regulation.
EUR, 12:45 p.m. GMT, ECB Interest Rate Decision (March) – the hot news of the day will be coming from the European Central Bank and the decision it takes. Interest Rate decisions have one of the most significant impacts on the currency they involve, in this case the euro. Market analyst projections are for no change and the rate to remain at 0.00%.
This event is really imporatnt because if the market gets a surpise with either a cut in the rate (which should be read as a negative sign for the euro) or an increase (this should be a strong vote of confidence that the economy is doing better, thus stronger euro), the market will react immediately.
There is also a likelyhood of spikes which are characterized by kneejerk reactions from the market. Usually, a more conservative approach involves awaiting the event to be reported, then evaluate the sitation, comapre with how the market responds and only after the initial reaction (after a couple of hours) take a decision if to enter or not based on your trading plan and outlined levels for doing business.
EUR, 13:30 p.m. GMT, ECB Press Conference – a discussion on the economic factors that played a major role in thaking the interest rate decision earlier today. May set off short-term trends depending on the information conveyed regarding future montery policy.
CAD, 16:00 p.m. GMT, Gov Poloz Speaks –again, the speech will likely involve comments on the factors that were instrumental in taking the rate decision earlier that week.
Wishing you Happy and Successful Trading!
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