Today’s Key Market Drivers – 27th October 2017

Haha to all those of you that thought the Euro would rise and we would quit the stimulus.” Mario Draghi

Even the most seasoned of traders and economist didn’t expect the ECB to announce an open-ended stimulus program when it released its latest policy statement on Thursday, but that’s exactly what they did. The Euro sunk post the statement with the ECB saying it will have no expiry date on the stimulus program but will reduce the current magic money printing to 30 billion euro per month until September 2018 before a review. The market expected the cut in the stimulus but the reason the Euro was sold off so heavily in response to the statement is that the ECB said the program is open-ended with no definitive expiry date. The ECB’s statement ensured the Euro did not rally but delivered on its promise to cut the stimulus. The market was looking for an end date and it didn’t get it. Please review my technical video update today for a more detailed explanation of price action.

Today sees the release of 3rd quarter GDP data and this has the potential to move the US Dollar to even higher levels if the data beats the market estimates. On a personal level, I bought USD v CAD yesterday 1.2792 based on key technical levels being broken, backed with fundamentals and will add more volume on consecutive daily closes above the 200 EMA on the daily chart.

 

About the Author: Andrew Barnett

Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular key-note speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

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