Forex Markets On A Roller Coaster On Central Bank Decisions

The big day has arrived as European Central Bankers and EU representative began final behind the door negotiations on the stimulus package to be unveiled by the bank today. Meanwhile markets have been distracted by unexpected events around the globe. Just a week ago the Swiss National Bank shocked the markets by removing their floor on the EURCHF to allow the currency to free float after a 3 year peg. At the same time the bank moved to negative interest rates.  This move sent the markets into an uproar as gold climbed to its highest point in 2015. The CHF soared 30% and saw international forex and investment firms into steep financial difficulties.  Just as the markets seemed to settle down the Bank of Japan and the Bank of Canada did just about the opposite of market expectations.  The franc is trading at 0.8646 against the greenback and against the euro the franc is at 1.0032 up by 52 points in the Asian session.  The euro gained steadily Wednesday to trade above the 1.16 level.
The Bank of Japan held rates and its current policy, while traders were expecting to see additional stimulus from the bank. The Bank of Japan yesterday slashed its inflation outlook as plunging oil prices dent efforts to slay deflation, but policymakers boosted their growth forecasts and said the economy was rebounding. The bank, which held off fresh easing measures after a two-day policy meeting, said inflation for the year starting in April would come in 1.0 per cent, well down from an earlier 1.7 per cent forecast. The JPY is trading at 118.25
Read more Click here / www.trade4x.net