Intervention

[hagadol]

If the European Central Bank (or the Feds) try intervetion measures, what actual happens:

How do they annouce it ?

How is it carried out ?

What happens to rates instantly ?

Historically what type of change can this prompt ?

 

[oatman]

I don't think they announce it. Be nice if they gave me a call though :cheesy:

 

[darrenf]

They don't announce it and sometimes don't even confirm that it has happened.

The way to spot it is if there is some huge price spike in an otherwise relatively smooth price action. For examples of this, just have a look at the usd/jpy chart for the last few months. Doesn't look too bad on a daily chart but flick back looking at 2hr or 4hr charts and you will see what I mean

 

[oatman]

Mind you, if they say they're entering the market, it has a similar effect.