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Published in:
2018 | OriginalPaper | Chapter
4. How to Decode Central Bank Statements
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Abstract
We have noted that central bank statements are important to traders in shaping trading directional decisions. They can be called the Rosetta stone of forecasting currency price direction. But they need to be decoded. Let us explore how. The first approach is actually to read the central bank statements and minutes of their meetings. Over time one gets a sense of the core concerns of the central bank and whether they are in a stimulus, contraction, or holding pattern on interest rates. The trader can learn an enormous amount about fundamental forces by just reading and understanding the official statements and releases.