Draghi’s Worst Nightmare
So yeah. Good luck trading this. I’m not sure I’ve ever seen a setup that’s more conducive to algo madness.
That's from our week ahead preview and it should serve as a warning to anyone feeling brave about trading the euro around Thursday's ECB meeting.
There's both upside and downside risk for the single currency this week, and parsing things is made immeasurably more complicated by the fact that not only will FX markets need to try and divine something about the timing of the ECB's exi
Algo. madness is the theme. Why not 1.40? And why not .98? Why not both over two years? It appears “beggar thy neighbor” and the associated trade dislocations are on the table, as is deflation. Other tgan irrational PE expansion, what is the market message really? Remember global pensions are underfunded to the tune of well over 70 trillion smackers. A 50% correction here and there to reflect true growth prospects means nothing has worked. Central bankers will have to earn their living?