Why ‘aggressive’ ECB easing on Thursday now looks like a done deal

There will be a Draghi Tsunami for sure! We are going to see new highs!

When Forex Traders are high on drugs they use to see their charts upside-down

Our guest is talking about USD/EUR It's a matter of perspective

Is it priced in already?

Of course is not priced in already... ECB strongly support an Euro as weaker as possible, and when we say weak we REALLY say weak... you have to see the Euro stable at about 0,90-0,93 $ to be able to gain enough exporting power to supass the negative inpact that gas and oil prices are having on inflation

this is just the easy fix to inflation.. so the ECB wont be able to cut rates only because the bond yields and markets will quickly catch up with this (I am talking couple of months... but thats quick)

ECB will need to get creative by adding more monthly purchases (currently at 60bn) or maybe relaxing the conditions of their purchasing program and buying bonds from other countries other than france and Germany (but then you have a political situation with Germany as they think they are not good enough) or even thinking about other more indirect relaxation of conditions for internal lending although overnight lending is probing to be pretty good

overall the EZ is not so bad, situation is stable but the ECB wants more and Draghi wants to retire as the man who overcame the crisis... of course this is not going to happen by finally increasing rates, ECB will increase rates WAAAAYY after Draghi retires but still he wants to do it as the man who intiated the begining of the end of the crisis in Europe...

lets not include what other factors aare contributing to Europes crisis, you have refugees and you have Greece and the massive problem of the impossible to hide Debt against GDP of the mayority of the countries.

The Euro Area was once created to be the strongest union of countries in the world and now after 20 years of bad management and lobby directed regulations and laws we cannot offer a strong enough argument to attract investments, 1st because we are not competitive and 2nd because there is no much investment available out there (see china's meltdown, EEUU internal problems and slow recovery, middle east submerged in war & emergin markets slowing down)

in summary!

there is no much investment out there
we are not competitive with an euro that's more expensive
ECB has a massive task to perform to keep up apperiences and ensure securing confidence
EZ been attacked by terrorists and with internal division in regards to refugee crisis
at least half of the members of the EZ have deep economical problems

so... you decide whats the picture here

So short the Dollar and the Euro and then buy Lead?

back to my comment... ECB didnt manage to keep up with apperiances so markets are disappointed and starting to unwind their positions