As expected, it’s been a very busy day for the euro.
The ECB announcement was very much as expected. It left the monetary policy unchanged, acknowledged the economic strong growth, and emphasized the subdued inflation. These were probably the reasons why the traders had quietly pushed the euro higher to 1.24 before the meeting. The euro bulls were betting on a non-eventful outcome.
Later, the President Draghi’s press conference delivered a nice gift to the euro bulls. Draghi sent a message to the market that the focus should be placed on the inflation and not in the exchange rates, when considering the future monetary policy. That message sent the EUR/USD soaring 100+ pips to 1.2536. The message is somewhat in contradiction to the other ECB policy makers’ point of view. They have expressed their concerns over the recent euro strength against the U.S. dollar.
4 long positions were opened during the ECB announcement and conference from my MT4 EA. 3 of them were losses, and only one trade ended with a profit.
The strategy can be found here.
The latest result can be found here.