25 March 2014 ~ Draghi Provides Opportunity

For the quick-firing trader there was money to be made today, on the back of ECB banker comments.

In the early afternoon (12:50 UK Time), ECB’s Makuch claimed members of the ECB board are prepared to take decisive steps if needed and one of the possibilities is adding liquidity.
6E behaved nervously and this was a sign of things to come… Harry Hindsight News Impact: 4/10

The Big Dog Draghi was scheduled to speak at the Sciences Po Conference in Paris, and at 16:15 UK Time he re-iterated that the ECB stands ready to take additional monetary measures.
Nothing new right? Well 6E took a considerable dive and it didn’t require a high speed supercomputer to get in on the action either.
On a Harry Hindsight Impact Scale, I’d call this a 6!


Data Released

And finally a bit of house-keeping to the 3 most noteworthy scheduled data releases of the session:

09:00 AM London Time saw the release of German IFO Business Climate – 110.7 vs Expectations of 110.9
To my surprise, the EUR moved a fair bit, albeit so quickly perhaps the best trade there was to fade it? Harry Hindsight News Impact: 3/10

09:30 AM London Time came and with it the release of UK CPI at 1.7% vs Expectations of 1.7%
Despite coming in bang in-line, 6B similarly put in a notable move, although no easy money in my opinion to be had. Harry Hindsight News Impact: 2/10

14:00 London Time saw US Consumer Confidence hitting 82.3, a good bit above the Expected figure of 78.5
The market (ES) response was muted, and the failure to rally was perhaps a reliable signal that the next move was to the downside. Several points were lost over the next half-hour. Harry Hindsight News Impact: 1.5/10