Day 294: Draghi shakes the market

Profit: $51.86 Total: $1,277.34

Boy oh boy, chaos wouldn’t even describe what happened to the EUR/USD this morning. For starters, the ECB announced a rate cut of 0.05% for their minimum bid rate which is the interest rate for the bank refinancing operations. This led the Euro to heavily fall within minutes, about -140 pips or so. Then, Draghi surprised the market by saying a further rate hike is not needed! This blasted the EUR/USD almost 300 pips in the span of NY session.

Luckily I did not even trade the EUR/USD today, although I was very tempted. I can’t even imagine how many retail traders lost a good amount of their money trying to short the EUR/USD. However, when Draghi finished his speech, I noticed a good opportunity on the EUR/AUD. The Euro was gaining strength so I took the long which turned out very successful. My heart goes out to the poor souls who shorted EUR/USD today.

Because of the unstable Euro, I took my profits and ran.

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