thing about scalping. In the next article we will explain how to trade the CB rhetoric. Only after the dust is settled is it recommended for trading to start for the retail traders. This reaction might take the price from 40-50 pips to a few cents. Keep in mind that not only is the Forex market influenced by a central banks decision, but the stock market as well, not to mention the bond market and the regular options markets. When the ECB started their QE program in January, the Euro lost about two cents that day but the real trade was in the longer term.
Forex trading central banks
So when you hear innocent comments from CB members about tightening the monetary policy, you had better buy because something big is coming and you dont want to miss the move. This is the reality of this century: Humans follow robots at least when it comes to trading in general, and to Forex trading in particular. The governing bodies of a central bank have different names depending on the jurisdiction, but essentially they all do the same thing. You should know that when a CB announces an important monetary policy change, such as the QE program, the move may last for years, and you can buy on every retrace (just pick the right direction). If anything has changed, they will react through new monetary policy tools.
Only after the dust is settled is it recommended for trading to start for the retail traders.
Speeches by heads of central banks that have the tendency.
Central banks also generally issue currency, function as the bank of the government, regulate the credit system, oversee commercial banks, manage exchange reserves and act as a lender of last resort.