A truly staggering amount of different economic statistics is due to be released today. For a full list of events, it is advised to get acquainted with the economic calendar, and sharpen your focus on the following points.
On the warm-up, market participants will get the change in the volume of industrial production in China, this is an important figure, but not so much as to be able to have a global impact on markets. Industrial production does not have a major impact on the final GDP, but may force participants to prepare for a "low start".
The following events will be much more interesting, the decision of the SNB regarding the rate of Libor will be released. At present, this is a corridor of interest rates, whose values are set in the range from -0.75 to -1.25. Targeted three-month level in case of an increase of the border will force the CHF to quickly become stronger against the majority of traded currencies. Very often, during decision periods regarding rates, brokers choose to lower their leverage to help clients avoid dramatic consequences.
Commercial banks lend their reserves, which are kept in the Bank of England at a certain interest rate, and today the markets will know at what level the Bank of England will continue lending. This is an extremely important event for the GBP. There may be surprises and, as a result, sharp movements in the price of the pound.
The planned volume of assets purchases by the Bank of England, which will be announced after the decision on the basic interest rate will add volatility to the currency. Against this backdrop of publications, a sharp anti-directional movement is possible. Large losses may be avoided via competent risk management. Avoid staying in highly-leveraged positions.
The consumer price index CPI, is the index on which the monetary policy of the Federal Reserve is largely dependent. Market participants will receive this figure at the end of the daytime block of statistics.
Many of the market participants, especially those who do not comply with risk management practices, will already be pretty battered by previous strong movements in the currency pairs, and may not adequately interpret these figures. They will follow the trends. This is the best option not only to save money, but also to multiply it. Today you should follow intraday short trends, thereby helping you to both save and multiply your profit. We wish you profitable trading.