Рет қаралды 4,879
In this video, our co-founder and head of Strategy, Alex Haywood, is going through the trading execution of AXIA Elite trader Demetris Mavrommatis, over the ECB Rate Decision on 3 February 2022.
While the ECB statement from its first policy review of the year largely reiterated the December guidance, President Lagarde spooked the European bond markets as she expressed her concerns on inflation and opened the door to 2022 rate hikes. This marked a significant hawkish shift in ECB policy, which had remained dovish over the course of last year, even as other big central banks had started to prepare the markets for rate hikes.
As a result of this policy shift, German and peripheral bonds collapsed, led by the short-end of the curve as traders brought forward their expectations for rate hikes.
As Lagarde started dropping the hawkish bombshells in her press conference, Demetris executed big short positions in the Bobl (German 5-year), the Bund (German 10-year) and the BTP (Italian 10-year). As those markets sold off aggressively on the back of the ECB’s hawkish pivot, he achieved a multiple 6-figure P&L.
👉 go.elitetraderworkshop.com/Free
00:00 - Intro
02:06 - Market Context
04:32 - Scenario Analysis
06:31 - ECB's Inflation Assessment
08:00 - ECB's Risk Assessment: Risks to Inflation tilted to the upside
17:06 - Lagarde Q&A: Unanimous concern about Inflation data
20:50 - Lagarde Q&A: Rate Increase possible in 2022
26:17 - Key Takeaways & Summary
#DayTrading #Trading #ECB
Follow us at:
Website: www.AxiaFutures.com/
Facebook: / axiafutures
Twitter: / axiafutures
Instagram: / axiafuturesuk
Contacts:
Demetris Mavrommatis - Co-Founder, Head of Trading
Alex Haywood - Co-Founder Head of Strategy