ECB Interest Rate Statement !

Hello Guys

I was Trading Today GBP/USD, and i was waiting ECB Interest Rate Statement News... the result cames Good for EUR so this mean GBP 'll go up

Why the Price Move Down while ECB Interest Rate Statement Cames GOOD !

Need Commet

The statement was not "good". It was in line with expectations of a 25 bp rate hike, but many market players had actually expected a 50 bp rate hike. That combined with al-zaqarwi's death has given the dollar some good support today. We also saw a very big drop in the US unemployment claims and this combined with Trichet's rather dovish comments made the dollar rally across the board breaking technical barriers along the way.

Success in Iraq (death of the al-qaeda leader) means 2 things:
1) a "victory" for the US which may help to clear up some uncertainty about oil
2) in turn this helps drop the price of oil which generally helps the USD

unfortunately for the anti-dollar sentiment, uncertainty is much more volatile than interest rate hikes...when you can tell what's coming (as in reduce the volatility of oil), future prices are easier to determine...uncertainty will kill any currency...and coming closer to solving the iraq puzzle only helps the US, even though the effects might not be felt for a little while (except in the USD).

Thanx guys for this info