25 Mar 2014
Nipping the Euro Zone recovery pushes Euro up - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained that, perhaps, the most notable development in Europe was comments by the Bundesbank's Weidmann, who seemed to have done his part to nip the euro recovery that pushed it to session highs near $1.3850.
Key Quotes:
“He indicated that what we have called the ECB's nuclear options remain viable."
"He said QE could not be ruled out (not "generally out of the question") and that negative rates were more appropriate to curb euro strength. We have suggested that a version of QE that buys foreign bonds may be a way the ECB can pursue a more expansionary monetary policy, which some euro area members advocate as does the IMF, while staying within its mandate."
Key Quotes:
“He indicated that what we have called the ECB's nuclear options remain viable."
"He said QE could not be ruled out (not "generally out of the question") and that negative rates were more appropriate to curb euro strength. We have suggested that a version of QE that buys foreign bonds may be a way the ECB can pursue a more expansionary monetary policy, which some euro area members advocate as does the IMF, while staying within its mandate."