Today, a series of speeches will be delivered by the heads of world’s central banks.
Haruhiko Kuroda, the head of the Bank of Japan, being an advocate of active monetary policy, will be one of the first among the heads of central banks to publicize his view on the state of the Japanese economy, for which the Bank of Japan is responsible. The head of the Bank of England, Mark Carney, will then take the baton, followed by a speech from the deputy governor of the RBA, Guy Debelle. Market participants will also seek hints in this report from the RBA on the further regulation of monetary policy. At the end of this big trading day, the speakers from the Fed's side, George and Fisher, will conclude the day of the central bankers' speeches, which began with the sunrise in Japan.
It is therefore easy to assume that today, the financial markets will undergo a wave of volatility. So, the most important question is: how is it possible to profit from the current situation?
The situation is such that at the moment, the dollar index has strengthened within the correction to its prolonged fall, and market participants did not form a common opinion about the further movement of the dollar index. Now it's time to use the forthcoming volatility to exit the profitable positions that were opened earlier.
In the review of the trading idea on September 20 on the USD/JPY currency pair, possible options for the development of price movement were analysed, and for long positions on the dollar the time has come for cashing in the profit. Today and tomorrow, on the wave of volatility, there is a chance to see prices close to 114 level, which, in turn, will serve as a signal for closing the position.
Today’s published statistics in the US on the number of initial applications for unemployment benefits can significantly affect the EUR/USD currency pair.
In a moment, against the general background of volatility, the price of the EUR/USD pair may fall down impulsively, and a good idea for someone who decided to enter a long position on the European currency will be the placement of orders from the price level of 1.17 and lower, down to 1.16, and with a large level of likelihood, many of these orders will execute, thereby giving an entrance at good prices to their owner. We wish you profitable trading!