Forex Reacts to Central Banks

The past couple of days has seen several central banks coming together, and then deciding not to change a thing. The FOMC left rates unchanged yesterday, as did the Bank of Japan, the Swiss National Bank and the Bank of England. While this sounds uneventful, the reaction from the Forex market has not been boring at all as we see new weekly highs and lows forming for the USD majors and Yen pairs.

Japan’s Decision

Most of today’s volatility was caused by the Bank of Japan’s (BOJ) decision to continue their current policy. Global markets are in turmoil right now as stocks sell off worldwide as the threat of a Global recession becomes more and more real.

EURUSD, GBPUSD

The EURUSD dropped 280 pips from its high of 1.1413 on June 8th and we anticipate ECB’s president Mario Draghi’s speech tomorrow will add further to Euro volatility.

The Cable continues to slide as the markets are anticipating the real possibility of Britain exiting the EU in next week’s referendum although it seems to have found some support for now at April’s low of 1.4022.

Trend Trader

The Forex market is finally trending again, and this creates favorable soil for our Trend Trader automated strategy, offered by our sister company Aforex, to grow. The Trend Trader capitalized on today’s moves by banking over 1200 pips in a single trading session. If you don’t believe it, just check out the verified and audited LIVE ACCOUNT results directly on MYFXBook.

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