ECB announced that they will expand Pool of QE as brexit is exhausting Supplies of Assets.What that actually means is still unknown.Do they buy more corp debt? more bank Debt?Allow Bonds with greater negative yield then Deposit rate eligible for purchase? What we do know is that Central banks are providing more stimulus.
Yen is moving lower and I believe traders are scared that BOJ will announce new stimulus soon .If 2 central banks have announced plans today doesn’t it look like a coordinated effort to do so?
Bunds move lower for 2 reasons 1) Spread trades vs. peripheral 2) yields will become too negative and they will be ineligible for purchases under QE program.All speculation for now.
Spoos,FTSE DAX all love it. Dax up into the gap from last week and this triggers some stops giving extra umphh to prices