Your Trade on the European Central Bank Meeting
The European Central Bank is meeting Thursday, and this strategist has a trading plan - sort of.
Hard to believe, but central bank meetings have been providing excitement lately. Could the European Central Bank follow suit on Thursday?
"From the meeting tomorrow we don't expect a lot, but given the surprises we've seen from other central banks over the course of this past week," notably a rate cut in Australia and the absence of a cut in Mexico, "the market is aware of anything," says Willie Williams, director of institutional derivative sales at Societe Generale.
"It's clear that Europe needs to do something to stimulate growth," he told CNBC's Melissa Lee. "Is there a possibility of a rate cut? Yes, but it's not the central case."
So Williams is holding out for a spike in the euro against the dollar before he recommends a trade. If it rises to 1.3250, he wants to enter the trade, set a stop at 1.3400, and look for a move to 1.2900. But be careful, he says.
"With the ECB as well as the French and German elections coming this weekend, there is a chance that the euro should remain under pressure, but I'm cognizant of the fact that we're in the middle of the range, which makes this a very tough trade right here."
You can watch the discussion on the video.
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