Macro Strategist, Saxo Capital Markets

Kay Van-Petersen

Macro Strategist

Saxo Capital Markets

Thematic (Sector/Industry)

United states Financials / Thematic (Sector/Industry)

<ul><li>With CHF last at 0.9033, we are +5% (unlevered) on the cross since the Fri Jan 16th call where it closed at 0.8587. I continue to believe and feel this is a big trade for the year, I am a lot more relaxed now that we are on the other side of the ECB and Greek election and think we are north of 1.02-1.05 in the 2nd half of the year </li><li>The size of ECB QE is not priced in – There is massive European Equities Upside!&nbsp;The case here is simple, we’ve just come out of a greater than anticipated QE from the ECB, that is open ended and set to run until Sep 2016.&nbsp;Whilst the market was more likely thinking we’d get a Euros 500-700bn handle, we got over a trillion euros worth, with a lot fewer parameters or caps than would have been expected by those pesky conservative Bundesbankers – who keep wanting to turn off the taps (I know I know, how dare they). </li></ul>

With CHF last at 0.9033, we are +5% (unlevered) on the cross since the Fri Jan 16th call where it closed at 0.8587. I continue to believe and feel this is a big trade for the year, I am a lot more relaxed now that we are on the other side of the ECB and Greek election and think we are north of 1.02-1.05 in the 2nd half of the year The size of ECB QE is not priced in – There is massive European Equities Upside!&nbsp;The case here is simple, we’ve just come out of a greater than anticipated QE from the ECB, that is open ended and set to run until Sep 2016.&nbsp;Whilst the market was more likely thinking we’d get a Euros 500-700bn handle, we got over a trillion euros worth, with a lot fewer parameters or caps than would have been expected by those pesky conservative Bundesbankers – who keep wanting to turn off the taps (I know I know, how dare they). 

The size of ECB QE is not priced in – Massive European Equities Upside