Record low interest rates – how did the euro react?

The euro's reaction to the interest rate decision punished many erring traders - on both sides of the market, says John C Burford. Here, he surveys the fallout, and plots his next trade.

On Wednesday, the market was in a strong rally mode and I was working a long trade.

And yesterday, the long-awaited announcement from the European Central Bank(ECB) revealed thatit was loweringits policy rate from 0.75% to 0.5%.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.