Draghi talks and trade delivers - but not convinced ECB QE is coming Our long German 10yr and short Euro trade gave us the goods yesterday, triggered by the...

Draghi talks and trade delivers - but not convinced ECB QE is coming Our long German 10yr and short Euro trade gave us the goods yesterday, triggered by the words from the mouth of Signor Mario Draghi. He says the European Central Bank will roll out more stimulus if needed. The market took it on board and reacted accordingly, the Euro getting dumped in an instant and closing at the low of the day. Now even though the spread of the two trades profited as our long bonds position held up and the short Euro position tumbled, the German 10yr bund did not react to the news as much as the currency did. The lack of move in the 10yr makes me think that currency markets believe more ECB action will come, but bond markets are doubting that sovereign bond buying, or Quantitative Easing (QE) will be announced. Even though commentators say otherwise, I would rather watch the market than listen to so called experts. Read more... (VIEW LINK)