With respect to the ECB meeting it is pretty clear that the market driven QE program being tapered ahead of its projections Mario Draghi, the president ECB clears that ECB needs to see stabilization in both actualized and expected inflation.Of late, Euro remained a weak buy against its main currency counterparts because of its collapsing yields curve. With continuous failure swing in yield generation, dip in real returns on fixed income products and inflation expectation being stagnant, traders are keen on dealing into handsome asset classes such as equity products. Although all this news are downbeat for Euro, it is not advisable to short at this stage as there are bearish technical frames in the US dollar index against Euro and stringent norms by ECB are likely events in near future. In last few weeks, it is quite explicitly evident that huge loads of shorts on Yen have not been shrewd trades and have neither fetched any smart returns nor hedged any FX exposures.Hence, learning from the past saves almost half of the portion in anyone’s portfolio as the saying goes this way “best defense is to attack.” Although a few set of negative news are lingering, wait for the better clarity of bearish signals which is not seen so far. Shorting Euro may result in a massive regret. A trader who follows active strategy and tend to take advantages of failure swings may take part in equities than FX.
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