Trading tip: Trading central bank speakers

Author: Giles Coghlan | Category: News

Worth the effort

Worth the effort
Earlier in the session Eamonn put up a list of Fed speakers due today. Why? Because there is a trading technique where you can trade the central bank speakers comments. Next to each speaker I explained whether they were a 'hawk',  'dove', or a neutral. 

So, in order to get atardeable opportunity we need to see a 'dove' or a 'neutral' make a 'hawkish statement'. To make this very simple, imagine a theoretical central banker who says that . there will be no rate rises until 2025. He is a dove. However, one day the central banker says, ' i expect two rate rises by 2023 now'. They are now a hawk, and the currency rips higher. 

So, in short, we are looking for a 'change of heart' to trade.  Here is another lesson I wrote on the subject

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