ECB rumours point to further stimulus in Dec while EUR to remain soft – ING

Research Team at ING, notes that the reports surfaced yesterday that the ECB are looking into allowing eligible banks to borrow bonds held under the asset-purchase programme for use as collateral.

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“While this may be seen as a step to tackle the ECB’s bond scarcity problem, our Rates Strategy Team note that it is more targeted at addressing market illiquidity issues. 1.05 in sight for EUR/USD amid ECB speculation and EZ political risks.”