Why One Trader Thinks The ECB Is About To Send The Euro Sliding

Jon Alternative Media, Banking, Blogosphere, Fiscal Policies

Don’t assume the euro will rally when the ECB makes its expected “hawkish” announcement of QE taper plans, according to Bloomberg FX commentator Vassilis Karamanis. In fact, there’s an argument for the opposite occurring. Karamanis explains why the most anticipated move in the markets on Thursday may again be a fade.
Euro Bears May Get Their Chance When Draghi Speaks: Macro View
Policy makers have done a very good job communicating their plans since the idea of a taper first caught traders’ attention. The consensus case is now for the ECB to signal a nine-month extension to its asset-purchase program at a reduced pace of around 30 billion euros a month.
Unless Mario Draghi sounds hawkish (by not talking down the euro or by suggesting interest rates will rise soon after the end of QE), euro bears could take it as a signal to chase a move toward October lows.

This post was published at Zero Hedge on Oct 24, 2017.