When the European Central Bank first announced their quantitative easing program, to the surprise of some but not traders in the currency and bond markets, the assumption was the program would start at a future date, perhaps months away. A new report, however, indicates the ECB has already begun its asset backed purchases and the trade execution plan remains foggy. ECB’s asset purchases to influence market direction Make no mistake, just like U.S. style quantitative easing, the ECB’s asset purchases to influence market direction is a trade and should be measured as such. As in the U.S., the trade results -…
ECB May Have Started Asset Purchases, Says Bank Analyst
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.