Will the European Central Bank (ECB) cut rates tomorrow morning by 25 or 50 basis points? Many speculate that the 25 bps cut forecast by many leading economists may actually wind up as a 50 bps cut. In the event of that, look for the EUR/USD to tank downward rapidly by approximately 100 pips. Now looks like as good of time as any to go short on that pair. Tonight's trading has maintained a very tight range with low volume in anticipation of the ECB rate decision.
My recommended trade of the night is to short the EUR/USD pair, ride it down to the 1.33 level then buy double and watch a huge rally. Enjoy a tidy profit riding this pair in both directions.
The AUD/USD descended rapidly earlier in the evening after the Australian government released poorer than expected jobs data, particularly a loss of 40,000 full-time jobs. Market adjustments had already indicated that speculators expected the exact opposite news.
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