What will the effect of the ECB QE be on the different markets, Forex, Indices, Energies, Agriculture? Any thoughts?
EUR short - Perhaps not directly after the press conference, but definitely in the near future. Equities long - After all, what places are left where you can put your money in today's NIR world?
Should a euro QE happen, it won’t come as a surprise to most people. For some time now, the markets have been anticipating the ECB to add euros to stimulate the euro zone economy. In the last six months, the euro has devalued by 14 percent and is now trading at around $1.15. That's below the $1.17 it debuted at in 1999.ECB President Mario Draghi is expected to announce a QE measure this coming Thursday. The size of the stimulus will dictate where the euro will head next, according to one macroeconomics expert.“The larger the program that is announced, the more the euro will sink,” said Gina Sanchez, founder of Chantico Global.She sees three possible options: the expected €500 billion stimulus, a €1 trillion stimulus (which Sanchez calls “QE bazooka”), or a smaller stimulus of less than €500 billion (which she refers to as “QE lite”). http://finance.yahoo.com/blogs/talk...happen-in-the-currency-markets-221225700.html
Waiting ever so patiently for this announcement, I'm thinking at least a 2% move and plenty of volatility tomorrow after this announcement is made ...markets want at least €500 anything less and I think markets react negative
EUR record shorts right now. I'd be cautious about hopping on the bandwagon. Agree, long term direction is down, but there could be some pain for shorts in the near future.