Much has been made of the Fed’s delay in “tapering” QE but the FOMC’s policy trajectory stands in stark contrast to that of the ECB. Not only is the Eurozone central bank far from scaling back accommodation, but a further expansion of stimulus seems likely considering last week’s surprise rate cut has limited capacity to truly ease credit conditions (market rates traded below the ECB benchmark months before the cut). I’ve entered short at 1.3362, initially targeting 1.3148. A stop-loss is set to trigger on a weekly close above 1.3577.
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