Interest Rate Statement

I have been observing the trend movement for the few months. I noticed there's a great potential in this forum.

There will be an Interest Rate Statement announcement on 28th June 2007. Will this affect a major movement in the forex market?

Interest Rates news are the biggest announcement in the economic calendar, at least as far as Forex goes.

Thanks a lot!

It seems that another BIG weve to face on 28th June 2007. I guess we should avoid trading that day

trading any news can be dangerous. It gets easier with experience. But staying out and watching what happens during the news release always helps with learning. And that is what makes it easier, not less risky. Just a little easier to trade. Confidence really in your judgment and decisions will take you a long way in this environment.

One of my "golden rules of sensible trading" is to stay out of the market the day Interest Rates decisions hit the wires. You never know what might happen, and a surprise might easily spike prices for over a 100 pips across the board.

Usually how long it'll last after interest rate announcement released? I mean the market gap

I have attended a few forex class recently by a well known trader in Malaysia, Dr. Lee Shin Quan. He was a doctor and decided to take forex as a full time job after spending 3 years doing his own research on forex. Here is what was discussed during the discussion.

Interest Rate Announcement/Statement
Never enter the market IF interest rate announcement release from 0900hrs to 2359hrs -I'm refering to Malaysia/Singapore time zone. He had studied the movement and noticed that each time when the Interest Rate released between that hour the market will go crazy. It will go as far as 100+ pips creating a huge huge gap. Announcement made after that period won't create a huge gap in the market.

New reversal New Rate
After each reversal in the market for example, if the market were floating around 1.34 and it went above 1.35 be extra careful because the trend might go down again. Let the trend to float around 1.35 for a week, then you will have confident the market will stay in 1.35 range for few more weeks or at least another 2 weeks.

I will continue to attend his talk and I will update here.

It's is expected that UK will hike the rates to 5.75%, which we wouldn't see much action, but if:

* UK left the rate unchanged 5.5% then cable might go down by 100 pips

* UK hike the rates to 6% which would be shocking then cable might go up 100 pips

For me best NOT to trade when such announcement is made

if the rate is hiked to 5.75 i expect GBP to loose some pips. but if 6% then gbp will definately climb.

currently, markets are expecting a rate hike and moving up(or will start). From my memory everyone expected a rate hike last time, and the price still moved some pips up after the anouncement