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Koefoed: How I am trading ECB and US Fed divergence
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The latest minutes from the FOMC and ECB highlights divergence between the two central banks remains and that could be an opportunity for FX traders, says Saxo Bank’s Mads Koefoed.
According to Koefoed, the minutes from the FOMC’s September meeting shows that the US Fed remains on track to hike rates and could do so in December.
Meanwhile in Europe, the latest minutes from the European Central Bank highlights concerns about market volatility and inflation remaining very low, which is likely to force the ECB to extend its QE programme, Koefoed says.
He explains what opportunities this offers in terms of trading EURUSD in both the short and long term.