What will happen in Europe?

Stocks and Bonds are trading near unchanged levels this morning ahead of the highly anticipated European Central Bank (ECB) meeting tomorrow and Friday's Jobs Report. Traders are not looking to take on any big positions ahead of the events.

There were rumors swirling around trading floors this morning that the ECB is set to undergo a large Bond buying program to help countries like Spain and Italy, but the ECB is not commenting on the headlines.

Any move higher in Mortgage Bond prices has been halted by a key technical resistance level since August 3, which has kept home loan rates steady to slightly higher. I will continue to recommend a Floating bias ahead of tomorrow's ECB meeting.

Leonard Winslow
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