Yesterday the Fed opened the door to more quantitative easing and today the European Central Bank finally got off the fence. The ECB cut its target rate by a quarter point to a record low 0.50% and its marginal lending rate by a half-point to 1.00%.

The euro will likely benefit but it could be choppy with rates near zero causing distortions in credit.

The more straightforward bets are in risk trades. The Canadian dollar is an outperformer today and now USD/JPY is finding its legs as 97.00 proves to be as formidable support as 100.00 has been as resistance. Cable also benefits from more stimulative policy across the channel.

If Draghi is the slightest bit dovish, look for those trades to extend.