5 Dec 2013
Flash: Draghi able to pull a rabbit from his EUR cap? - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale wonders whether the ECB can come up with a (scrawny?) rabbit to stop the Euro’s advance, or ‘something to increase liquidity’?.
Key Quotes
“Inability to successfully ease monetary policy is something the ECB shares with Japan’s experience over recent years.
“The short-tem risk is that the Euro pushes higher. The NOK has fallen sharply this year vs most currencies (-9.5% vs UD, -12.75% vs EUR), to the joy of the government.”
“Some people look for a hint of a rate cut in Q1, or for the rate path to be moved down further, hikes pushed deeper into the future.”
Key Quotes
“Inability to successfully ease monetary policy is something the ECB shares with Japan’s experience over recent years.
“The short-tem risk is that the Euro pushes higher. The NOK has fallen sharply this year vs most currencies (-9.5% vs UD, -12.75% vs EUR), to the joy of the government.”
“Some people look for a hint of a rate cut in Q1, or for the rate path to be moved down further, hikes pushed deeper into the future.”