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With recession threatening Europe, where should you invest?

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Manufacturing data out of the Eurozone is as weak as expected this Monday. PMI across the Euro area is 50.7, slightly lower than predicted. The Euro itself has barely budged. So what does this mean for traders?

Mads Koefoed notes that Eurodollar is already trading around the 131 mark but with positive data coming out of the US it could fall further. He does, however, advise caution for those looking for further falls this week.

Koefoed also points to other possible trades. He notes that countries like Austria and Hungary are looking relatively cheap at the moment. On the other hand, Portugal and Greece look more expensive. He suggests a pair trade between some European countries - for example going short Portugal and long Austria.

With the ECB meeting on Thursday are we likely to see QE? Koefoed says it won’t happen this week but is likely later this year or early next.