Hi ,

7:45am EU ECB Interest Rate  1.00%(E)    1.00%(P)    0.25%(S)    50M
  
E = Expected Release Figure
P = Previous Release Figure
S = Deviation or Surprise Factor
M = Expected Movement In Pips (if deviation is hit)

[IMPORTANT CHANGES]
I've decided to keep newsletter short and sweet.  If you prefer to
look at the numbers and get right on to trading, then you are going
to love the new format.  If you want more detailed analysis, you can
always read them at my blog where I share a much more detailed
analysis and sometimes with a pre-recorded video to get you
familiarize with trading the news...                     -Henry Liu

***

NEWS TRADING

Thursday September 2, 2010

[7:45am NY Time]

ECB (European Central Bank) will be rendering its rate decision
today, it is widely believed that ECB will keep current rate
unchanged. Here's the forecast:

EU ECB Rate Decision Forecast 1.00% Previous 1.00%
ACTION: EUR/USD BUY 1.25% SELL 0.75%

The Trade Plan
ECB rate decision comes in two part, the first one is the 7:45am
rate announcement followed by the 8:30am Press Conference where ECB
chief Trichet issues the official statement on this rate decision.
Since it is extremely unlikely to get a surprise from ECB, there is
usually no volatility following this release, we should focus on the
actual Trichet's speech in 45 minutes.

If ECB surprises the market by hiking rates unexpectedly, then
expect market to go into a buying frenzy for EURUSD and we should
jump in immediately on a spike trade because no matter what the
slippage or spread is, we will end up making positive pips.

However, if ECB decides to keep rates unchanged (99.99%
possibility), then we should stay out of the market.

For a more detailed analysis including Market and Pre-News, please
visit my blog:

ECB Interest Rate Decision Detailed Analysis

Thanks,

Henry Liu