ECB promises almost trillion, Trump wants even more
Chaos and anarchy are still there in the financial markets. Although even in this chaos, elements of order can be found and money can be made from them. Our yesterday's recommendation to sell EURGBP evidences in this favor. After madness on Wednesday, yesterday everything began to return to their places and more than compensate previous losses.
The reason for the sale of the euro on all fronts was the results of an emergency meeting of the ECB. European Central Bank decided to provide a new program of asset repurchase of € 750 billion.
Trying to keep up with the Europeans Trump offered a $ 1 trillion aid package.
The Bank of England looked good even against this background with its rate cut to 0.1% and the expansion of the quantitative easing program to $ 750 billion. As a result, pound volatility was extremely high on Wednesday.
What else unites Europe and the USA? The simultaneous closure of factories, which has become the largest since World War II. So for those who think that the worst is over, we have bad news.
The Swiss National Bank (SNB), meanwhile, shows what needs to be done in order to prevent an excessive strengthening of the national currency: instead of the usual rate cuts or quantitative easing programs, he resorted to good old currency interventions.
Why SNB experience is interesting here and now? We have already noted that the dollar has strengthened too much. This is bad for the US economy especially right now. The Fed rate cut to 0% did not work. Flooding the repo market with money does not help. Actually, only currency interventions remained as the options to stop the growth of the dollar. Meanwhile, the number of cases in the United States doubled yesterday (!), And this is an excellent reason for panic. We mean that we are preparing for a dollar reversal and are beginning to slowly sell it primarily against the Japanese yen. Sells in the US stock market are still our best trading idea of the year.
Of the other promising positions that we expect to shoot in the foreseeable future, oil purchases continue to be.
The reason for the sale of the euro on all fronts was the results of an emergency meeting of the ECB. European Central Bank decided to provide a new program of asset repurchase of € 750 billion.
Trying to keep up with the Europeans Trump offered a $ 1 trillion aid package.
The Bank of England looked good even against this background with its rate cut to 0.1% and the expansion of the quantitative easing program to $ 750 billion. As a result, pound volatility was extremely high on Wednesday.
What else unites Europe and the USA? The simultaneous closure of factories, which has become the largest since World War II. So for those who think that the worst is over, we have bad news.
The Swiss National Bank (SNB), meanwhile, shows what needs to be done in order to prevent an excessive strengthening of the national currency: instead of the usual rate cuts or quantitative easing programs, he resorted to good old currency interventions.
Why SNB experience is interesting here and now? We have already noted that the dollar has strengthened too much. This is bad for the US economy especially right now. The Fed rate cut to 0% did not work. Flooding the repo market with money does not help. Actually, only currency interventions remained as the options to stop the growth of the dollar. Meanwhile, the number of cases in the United States doubled yesterday (!), And this is an excellent reason for panic. We mean that we are preparing for a dollar reversal and are beginning to slowly sell it primarily against the Japanese yen. Sells in the US stock market are still our best trading idea of the year.
Of the other promising positions that we expect to shoot in the foreseeable future, oil purchases continue to be.
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