Taking a Fundamental Approach to Forex Trading

Suggested Strategies to trade the Euro with this economic release:

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Before the decision: buy the rumors sell the new strategy: *If the market expects the ECB to hike, traders may buy the Euro for some time before the announcement and square their position right after the decision. *If the market expects the ECB to cut interest rate, traders may sell the Euro for some time before the announcement and square their position right after the decision.

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After the decision: Surprise strategy *If the ECB decision comes in line with expectations, traders may prefer to stay on the sideline. *If the ECB cuts interest rate while the market was expecting it to hike or to stay on hold, traders may sell the Euro in a very swift trade (1-2 hours). * If the ECB increase interest rate while the market was expecting to cut or to stay on hold, traders may buy the Euro in a very swift trade (1-2 hours).