ECB cut rates, with no further guidance.

As expected, the ECB has cut interest rates. In a rather unusual scenario, rates have been cut because they can, rather than because they have to. And with no further guidance on the future path, it has been deemed a 'hawkish cut'. Which leaves a bit of a conundrum, usually, following a rate cut, a currency would be shortable. But due the nature of the 'hawkish cut' combined with an increase in overall growth forecast. I think that renders the EUR un-tradable for the time being.

Should I long the EUR?.. Simply due to the fact rates have been cut, I can't bring myself to place a EUR long trade.

The CAD is still on my radar as a potential short following yesterday's 'dovish cut'. But with the USD CAD chart sitting just below daily resistance, it's difficult to have confidence in a CAD short.

Which leaves us the JPY, JGB's have fallen below 1 again and I have an inkling the yen may be shortable, but the JPY is currently hovering just below 4hr support Vs most of the currencies.

So I currently find myself waiting for some fresh impetus and hopefully a break out on either the JPY or the CAD before feeling confident in placing a trade.

It's a difficult trading environment this week.

Feel free to email any thoughts or questions, you may have different views to me: johnelfedforexblog@gmail.com