Saxo Group Videos

Fasdal: How to trade the ECB

Later this Thursday, the President of the European Central Bank, Mario Draghi, is expected to deliver further stimulus to the Eurozone economy. Lowering the deposit rate by 10 basis points and adding to the bond-buying programme of between five and 10 billion euros each month are already expected by the market.

But the ECB could go much further, says Saxo's Head of Fixed Income, Simon Fasdal. He explains what the options could be but he also admits that the ECB could disappoint the market.

So how best to trade the ECB? Simon looks at all three asset classes - bonds, equities and Forex. He explains why he is cautious when it comes to longer-term bonds and in particular 10-15 year German bunds. EURUSD could go weaker, he says. And he outlines why he thinks European corporate bonds and European equities could be the best trade. Simon pays special attention to Southern Europe especially Spain, Italy and Portugal.

04:32 minutes
Tags: bond, bond buying, bond investing, bond investors, bond market, bond markets, bond purchase, bond yields, bonds, bonds and equties, bonds market, bonds update, bonds v equities, ecb, ecb action, ecb draghi, ecb euro, ecb meeting, ecb news, ecb policy, ecb qe, ecb rate, ecb rates, ecb rates decision, economic, economics, economy, equities, equities saxo, equities trading, equity, equity index, equity market, equity markets, equity platform, equity portfolio, equity portfolios, equity research, equity strategy, equity trading, eur, euro, euro area, euro dollar, euro zone, eurodollar, europe, european, european central bank, european economy, european union, eurozone, eurozone economy, eurusd, fixed income, foreign exchange, forex, forex market, forex markets, forex trading, fx, fx crosses, fx forex, fx investing, fx market, fx markets, fx options, fx strategy, fx trade, fx trade idea, fx trading, fx volatility, italian, italian bonds, italy, portugal, qe, qe2, quantitative easing, saxo, saxo bank, saxo tv, spain, spain economy, spanish bonds, trader, trading, tradingfloor, tradingfloor.com

Switch to