Draghi and Co disappointed the euro bears yesterday so where do traders go from here?
Well, the fall-out will reverberate for a while yet but the immediate focus is now on the US and non-farm payrolls at 13.30 GMT (and yes you can win one of our brilliant new t-shirts here)
I said yesterday in my ECB preview that caution was advised both with them and the Fed and provided some scenarios that have been playing out since the decision was made
Draghi was crowing about the merits/success of QE and that accelerated the euro move higher It is unlikely now that even he would have the gall to talk down the euro after his performance yesterday and we should expect euro dips to be bought. A strategy I have advocated for a while now
Yellen has dropped hawkish tones into her rhetoric this week but we know that central banks can throw in a curve ball or two and softer jobs data today will certainly give the FOMC plenty to think about.
Even the release of decent NFP numbers doesn't pre-empt a rate hike on 16 Dec and I remain of the view that it's by no means a done deal.
So trade what's in front of you. Too much analysis can lead to serious headaches and damage to the wallet
Forex markets are the most fickle and always have been. Newbies and old heads will have both learnt from yesterday, or should have done whether the rapid moves brought success or disappointment
You can't deal backwards but equally it is dangerous to ignore what has gone before. Traders must always move forward whilst embracing the present and learning from the past
So whatever the ECB did to your account there is always more action to come. If you lost money yesterday don't chase the ace today. There is nothing in the retail trading rule book that says you can't step away and re-assess. Equally if you made money then banish all thoughts of omnipotence. Forex markets have a habit of biting you up the backside.
There is no rocket science at work here and it's wise to remember that, whatever trading tools you use. Each day brings a different scenario but your discipline must remain constant. That is absolutely key.
Onwards and upwards. Bring on the NFPs!
