ECB Rate Hike

[iota]

Isn't a rate hike supposed to bullish?

Straight after the rate change EUR dropped. Was it priced in? Is it because it benefits the core and f***s the periphery?

Can wiser heads explain?

 

[scose-no-doubt]

I always assume it depends in what goes into the linear models and what kind of currency related (structured?) trades need to be entered or unwound rather than it just being like an on/off switch. Esp immediately after a release. As such it's punching above my weight esp in terms of info.

 

[Masquerade]

They've only been talking about it for the last month so it's no surprise. Wait 20 mins, then it'll get very interesting.

 

[anley]

The expected is ALWAYS priced in to a market.

Never forget you're dealing with FX here and some of the brightest people on the planet help to price it up.

 

[Masquerade]

Not sure if i'd call them the brightest. The smart ones are making money from their mistakes. But yes, it was expected and the real interest will be on Trichet's stance on further rate hikes.

 

[cristiano]

The expected is ALWAYS priced in to a market.

Never forget you're dealing with FX here and some of the brightest people on the planet help to price it up.

Is that a reference to the 2 micro lots I sold earlier? If so, thanks :cheesy:

 

[Martinghoul]

It was priced in....

 

[anley]

I said 'some of the brightest' and it's true, in the markets there are some of the word's most brilliant people (at markets, maybe in life they're pricks) and they're heavily involved in setting the price.

Of course for every great trader there's 10,001 knuckleheads.

 

[scose-no-doubt]

...Or maybe they were waiting for Trichet to rock the mic.

 

[iota]

Yup. Those longs were actually starting to pay and that simply wouldn't do, so he thought he better bust some lyrics.

 

[TheBramble]

What rate hike....