Trading plan 06/15/2018

The general picture: The fall of the European currency should continue.

On Thursday, the second major event of the week - the ECB meeting. The ECB finally announced what it had been waiting for a long time - the ECB is completing the program of pumping markets with liquidity in December 2018. This program has pumped into the markets a massive 2.5 trillion euros and lasted 3.5 years. Thus, the ECB turns to a normal policy for the Central Bank - regulating the economy and markets through changes in rate.

At the same time, the ECB not only failed to raise the zero base rate and the negative deposit rate for banks (-0.4%), but the ECB said it would not raise rates until at least the summer of 2019. This caused the collapse of the euro.

The fact is that the day before the ECB promulgated its decision the world's main Central Bank - the Fed also held its meeting. The Fed, on the contrary, raised the rate by another + 0.25% (to 1.75-2.00%) - the second increase in 2018. Moreover, the Fed promised to raise the rate at least two more times this year - and hinted that there could be a faster rate hike ahead.

Thus, the markets got a very clear picture: the Fed is on the way to raising rates, the ECB is clearly on the spot - the gap in yields in favor of the dollar - we get the decline of the euro.

GBPUSD: The strong drop of the European currency should continue.

Sell the pound on a rebound from the the top: Sell from 1.3300.