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Benefits of Portfolio Diversification

BoJ Interest Rate Decision | Will the Forecasts be accurate

It’s time to prepare for the upcoming BoJ Interest Rate Decision. The BoJ quite often proves analysts forecasts wrong. Be careful.

As with all Central Bank Interest Rate Decisions, there is always a risk of massive volatility spikes. 

On Dec 18th 2015 The consensus for The BoJ was they’d reduce rates from 0.1% to 0.0%. The consensus was wrong and The BoJ kept rates the same. Then on the following decision on Jan 29th 2016, the consensus was again that The BoJ would reduce rates to 0.0%.

What did The BoJ do? They reduced them to -0.1%. On that day the USDJPY rallied from 118.8 to 121.1, an increase of 1.95%. 

The BoJ Interest Rate has remained at -0.1% since then. Analysts have forecast changes to the rate but The BoJ has remained firm keeping rates the same.

Interest Rate Decisions always carry the potential for colossal volatility spikes and should be considered a hazardous time to trade.

Are you a news trader?

Or maybe a breakout trader?

If you plan to trade The BoJ Interest Rate Decision, Tweet us how you plan to tackle the volatility storm should it surface!

Brought to you by Darwinex: UK FCA Regulated Broker, Asset Manager & Trader Exchange where Traders can legally attract Investor Capital and charge Performance Fees.

Risk disclosure:

https://www.darwinex.com/legal/risk-disclaimer

Content Disclaimer: The contents of this video (and all other videos by the presenter) are for educational purposes only, and are not to be construed as financial and/or investment advice.

Benefits of Portfolio Diversification

ECB Interest Rate Decision | Consensus remains unchanged

It’s time to prepare for the upcoming ECB Interest Rate Decision. The EURUSD is long considered to be the least volatile forex pair.

But, when the ECB meets to decide on the Interest Rate for the Eurozone, this can change. 

Did you know Darwinex uses the EURUSD as a reference in its calculating the D-Leverage? 

The ECB reduced rates from 0.05% to 0.00% on March 10th 2016, and they’ve not budged since. On that day, the consensus was the ECB would keep rates the same, but they reduced them to 0.00%. This unexpected decision saw wild price action during and immediately after the event. 

Since then, the ECB has been pretty predictable in keeping rates at 0.00%, which has meant minimal spikes in volatility.

Interest Rate Decisions always carry the potential for colossal volatility spikes and should be considered a hazardous time to trade.

Are you a news trader?

Or maybe a breakout trader?

If you plan to trade the ECB Interest Rate Decision, Tweet us how you plan to tackle the volatility storm should it surface!

Brought to you by Darwinex: UK FCA Regulated Broker, Asset Manager & Trader Exchange where Traders can legally attract Investor Capital and charge Performance Fees.

Risk disclosure:

https://www.darwinex.com/legal/risk-disclaimer

Content Disclaimer: The contents of this video (and all other videos by the presenter) are for educational purposes only, and are not to be construed as financial and/or investment advice.