Even during the thin market of the year’s last week there are some opportunities for forex robot news trading after an important event. On Friday (29 December), the German statistical office (Destatis) will publish its first preliminary inflation estimate of the Euro area’s largest economy for December. This will tell a lot about how inflation trends could evolve in the whole euro area. Analysts are expecting lower year-on-year inflation compared to November due to base effects. However, even that would call for faster month-on-month inflation which shows that the data is not easy to predict.
This gives a good opportunity for forex robot news trading, as surprising news move prices the most, causing all-important volatility for trading. In this case a surprise is very likely.
Can the strength of the euro continue in 2018?
The euro has been regaining its strength against the dollar during 2017. However, the rise of the euro slowed down since early September. The market is in a wait and see mode. Any evidence of accelerating inflation would strengthen the expectations of an interest rate hike by the ECB. On the other hand, a lower than expected inflation would send the euro in correction mode by postponing a future rate increase by Mario Draghi and his team.
Forex robot news trading strategies can work very efficiently on Friday if we see any surprise in Euro area inflation. You should be at your computer at 1pm UK time or if you cannot make it set your robot to watch out for the news and profit from it.