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Euro Merchants Beware: EUR Worth Volatility & ECB Fee Selections

EURO PRICE VOLATILITY HEIGHTENED AROUND ECB MEETINGS

EURUSD, EURJPY, EURGBP, EURAUD, EURCAD and EURCHF are inclined to expertise heightened volatility round European Central Financial institution (ECB) conferences Euro worth motion surrounding high-impact occasion danger like ECB price selections warrants further prudence by foreign exchange merchants Try the IG Consumer Sentiment Report for real-time perception on EUR foreign exchange dealer positioning

Bigger than regular gyrations in spot EUR costs round ECB financial coverage updates ought to be anticipated by foreign exchange merchants in keeping with knowledge pulled on main Euro forex pairs from January 2013 to September 2019. A statistical evaluation on Euro worth motion over the 24-hours earlier than and after the discharge of ECB price selections reveals that EURUSD, EURJPY, EURGBP, EURAUD, EURCAD and EURCHF are inclined to expertise sizable swings in efficiency when in comparison with non-ECB assembly buying and selling days. Although mouthwatering for volatility fiends, comparatively elevated measures of volatility is broadly indicative the extent of danger is operating above common.

Check out the DailyFX Central Financial institution Calendarfor scheduled ECB conferences and upcoming rate of interest selections from different main central banks.

EURO PRICE VOLATILITY AROUND ECB MEETINGS

The desk above exhibits absolutely the worth (i.e. +/-) median change in spot EUR costs surrounding an ECB assembly, which is in comparison with non-ECB assembly buying and selling days the place “T” is the time that an ECB price resolution crosses the wires, “T – 1” the 24-hours prior and “T + 1” the 24-hours following the central financial institution’s financial coverage replace.

Conclusions are the identical no matter how the info is sliced-and-diced to embody Euro worth motion within the runup to and aftermath of an ECB price resolution: the central financial institution’s financial coverage updates broadly propels forex volatility. Alas, foreign exchange merchants ought to totally take into account implementing stringent danger administration methods when buying and selling the Euro round an ECB assembly – like putting tighter stops or buying and selling smaller place sizes.

EUR/USD PRICE VOLATILITY AROUND ECB MEETINGS

EURUSD Price Chart Euro Volatility Around ECB Meetings

Spot EURUSD sometimes fluctuates +/- 43 pips on a given day, which compares to the common +/- 47 pips the day prior and common +/- 85 pips the day following an ECB assembly.

EUR/JPY PRICE VOLATILITY AROUND ECB MEETINGS

Euro Traders Beware: EUR Price Volatility & ECB Rate Decisions

Spot EURJPY sometimes fluctuates +/- 55 pips on a given day, which compares to the common +/- 59 pips the day prior and common +/- 101 pips the day following an ECB assembly.

EUR/GBP PRICE VOLATILITY AROUND ECB MEETINGS

Euro Traders Beware: EUR Price Volatility & ECB Rate Decisions

Spot EURGBP sometimes fluctuates +/- 31 pips on a given day, which compares to the common +/- 29 pips the day prior and common +/- 37 pips the day following an ECB assembly.

EUR/AUD PRICE VOLATILITY AROUND ECB MEETINGS

Euro Traders Beware: EUR Price Volatility & ECB Rate Decisions

Spot EURAUD sometimes fluctuates +/- 64 pips on a given day, which compares to the common +/- 62 pips the day prior and common +/- 94 pips the day following an ECB assembly.

EUR/CAD PRICE VOLATILITY AROUND ECB MEETINGS

Euro Traders Beware: EUR Price Volatility & ECB Rate Decisions

Spot EURCAD sometimes fluctuates +/- 58 pips on a given day, which compares to the common +/- 72 pips the day prior and common +/- 107 pips the day following an ECB assembly.

EUR/CHF PRICE VOLATILITY AROUND ECB MEETINGS

Euro Traders Beware: EUR Price Volatility & ECB Rate Decisions

Spot EURCHF sometimes fluctuates +/- 26 pips on a given day, which compares to the common +/- 19 pips the day prior and common +/- 29 pips the day following an ECB assembly.

FOREX TRADING RESOURCES

— Written by Wealthy Dvorak, Junior Analyst for DailyFX.com

Join with @RichDvorakFX on Twitter for real-time market perception

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