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Events Trading: Opportunities over a quiet ECB Meeting

Bund 26 August 2018

Even when a Central Bank meeting is fully expected to deliver very little in terms of new information and then proceeds to do exactly that, it is rare that at least one trade opportunity doesn’t present itself. For this reason, staying aware of potential smaller chances and being ready to react during the press conference and commit to the trade is what turns a non-event meeting into strong opportunity.

Over the July meeting the ECB delivered very little – the focus of the meeting was the inflation outlook and the ambiguity around rates staying at present level through summer 2019. The ECB head, Mario Draghi, confirmed that “confidence that the sustained convergence of inflation to our aim will continue” which created an initial dip in Bund. But when asked about rates staying at present levels, he was explicit in pointing out once again that they would stay at present levels “at least through summer 2019.” With little else to go on the market turned higher, now finding an access point to get long becomes a trader’s focus.

With the Bund moving higher, constant reloading of the bid followed by an aggressive shifting up of this accumulation gave Ross the access point to get long which he discusses in this live AXIA Central Bank debrief as well as how the trade is added to and small mistakes in adding. By debriefing these events you can hone your skills ready for the next Central Bank event.

Event and economic data trading are key skills developed by all AXIA traders and as such a whole week is dedicated to trading around these large opportunity events on the Axia Futures 8-week Trader Training Career Programme.

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