EUR/USD: What the market is expecting from the ECB
Expectations are now pretty clear, with the market looking for EUR1.1 trillion in QE starting in March. This will mean that the massive EUR speculative shorts will have to sit tight for another few months and we all know how difficult that is to do. Once the rumours started flying overnight, EUR/USD spiked up to take out stops above 1.1650 and this could be a sign of things to come? Perhaps more of the macro shorts get squeezed post-ECB? We shall have to wait and see. I won’t be taking any positions but will wait and look for some trade opportunities after the event.