JamesThatcher
Well-known member
What does the data mean to the market?
The National Bank of Poland (NBP) Monetary Policy Committee's decision on where to set the benchmark interest rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
A higher than expected rate is positive/bullish for the PLN, while a lower than expected rate is negative/bearish for the PLN.
Historic deviations and their outcome
November 3 2021 Today we saw a 0.25% hike above the forecasted increase of 0.25%. Therefore a 0.50% basis point increase to the rate. We saw a 264 pip move in the first minute.
Check out the report history here https://calendarapi.galaxysoftwarei...S0xMS0wMyUyMDE0OjUwOjAwLjA7cz1FVVJQTE47cj1NMQ
I will use forecasts of:
PL Rates Statement 1.75
Today's trade plan
Today I'll be looking for a -/+ 0.50% deviation from the forecast of a 1.75% interest rate increase to trade in the relevant direction.
So if we get an actual of 2.25% I'll take a buy or 1.25% to take a sell.
Tradable pairs
Hope this helps but please do your own analysis!!
Good luck!!
James Thatcher
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
