Today, the European Central Bank will make a decision about the interest rate in the Eurozone. This is supposedly the biggest event this week, after last week’s Non Farm Payrolls in the US. Most economists and analysts are expecting a half a percent cut, from 2.5% to to 2%. But Jean Claude Trichet and his friends at the ECB usually don’t make big surprises. The rate will be cut as expected. On one hand, Ireland might call the IMF for help, Spain’s credit was degraded, and Germany lost it’s position as the world’s third economy to China. On the other hand, Trichet would not like waste all the ammunition. In the last rate decision, he stated that the central bank must ‘beware of being trapped at nominal levels that would be much too low.” Forex Market Reaction The market already adjusted itself to the new situation: the Euro depreciated against the dollar. EUR/USD now at 1318. Only a big surprise would send the Euro below 1.30. The Euro also lost ground to the Japanese Yen, hitting a new low of 116.57 before retracting a little bit. EUR/JPY will probably not fall much lower. So, the ECB Minimum Bid Rate Decision might shake the market for a few minutes, but won’t make a big difference. Update: More about the ECB rate decision: Macro Man posted a poll that sparked an interesting discussion, and Kathy Lien wrote an interesting analysis. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Expert score 5 Etoro - Best For Beginner & Experts0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 5 Read Review Open My Free Account Your capital is at risk. Opinions share Read Next Forex Daily Analysis – January 15th 2009 Yohay Elam 13 years Today, the European Central Bank will make a decision about the interest rate in the Eurozone. This is supposedly the biggest event this week, after last week's Non Farm Payrolls in the US. Most economists and analysts are expecting a half a percent cut, from 2.5% to to 2%. But Jean Claude Trichet and his friends at the ECB usually don't make big surprises. The rate will be cut as expected. On one hand, Ireland might call the IMF for help, Spain's credit was degraded, and Germany lost it's position as the world's third economy to China. On the… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
