Shorting stocks on the biggest exchanges in Europe proved to be the right strategy on Thursday morning.
Investors are selling out the assets after the Fed released the minutes of the last meeting in July. The minutes show that many members of the committee are unwilling to cap the yields of US bonds.
The minutes prove the economic outlook for the US and world are gloomy, and that Fed won’t introduce a yield curve control strategy. This is a hint that the volatility of the rates in the US may increase.
At the moment of the writing DAX30 is down -0.74%, French CAC40 -0.88%, FTSE100 -0.99%, and Spanish IBEX35 -0.72%.
Many SimpleFX traders benefited opening SELL orders this morning, however, nobody knows when’s the time to buy-low the underpriced assets.