Forex Trading Live Update, Thursday 2nd August

by Joe Oliver, Forex Trading-Pips

Euro currency traded with extreme intra-day volatility on Thursday traversing a 194 pip range over 30 minutes following comments from ECB President Draghi.

EUR 30 minute bars

EUR 30 minute bars

ECB Press Statement Summary

  • “Risk premia that are related to fears of the reversibility of the euro are unacceptable, and they need to be addressed in a fundamental manner,”
  • “The euro is irreversible.”
  • There is a “severe malfunctioning” in bond markets
  • “It is clear and it is known that Mr Weidmann and the Bundesbank have their reservations about programs that buy bonds,”
  • “Governments must stand ready to activate the EFSF in bond markets,”
  • The central bank “may undertake outright open-market operations.”
  • ECB intends to join forces with governments to buy bonds in sufficient quantities to ease the region’s debt crisis

We are currently short the euro in our Forex Signals Trend Following component with accumulated open profits of 120 pips.

 

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