ECB Info on QE decision

This week we could get major news from the ECB. That's the "Fed" of Europe. As you may know, they are now in a QE cycle (What the US did in 08) buying bonds every month. It was scheduled to end.

1) This week they are expected to extend the program beyond its scheduled end point

2) More importantly, markets are anticipating major news on HOW it will continue.

  • Will they extend as is? (bullish)
  • Will they taper it down which means reduce the bonds they buy every month? (bearish)
  • Will they change it? (stop buying corporate bonds or ???)
  • Will they add to it? (very bullish but not likely)
  • There are other nuance scenarios: Like what if Draghi doesn't mention "doing more?" Will traders interpret it as bearish etc..

There are many iterations of the rhetoric.... no one really knows. Here is a chart I found online that offers someone else's expectations

Posted to Create Income with Option... on Dec 06, 2016 — 10:12 AM
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