A well-known NY thinktank was out with a report earlier saying the ECB won’t take action next week although they could use some stronger language to indicate sovereign QE or other action could be coming.
To me, it’s a given that the ECB won’t announce QE next week and I think there might be a great trade buying the euro on those expectations. Perhaps it’s wise to wait for a bit of a dip first because the euro has risen in three straight days but even from these levels I like the upside on that trade.
The trendline at 1.2541 followed by offers at 1.2550 could cap the upside. Look for a flurry of trading as London winds down and then ti could be a very quiet market.
