8 Apr 2014
Bullishness back to EUR? - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, notes the EUR could return to higher levels if ECB remains 'on hold'.
Key Quotes
"The euro has strengthened modestly following comments yesterday from ECB Executive Board member Mersch which dampened investor expectations that the ECB will soon implement some form of QE. ECB Executive Board member Mersch stated that “QE is above all a theoretical concept” while stressing that the journey “from theory to implementation is a long way”."
"He also clarified that the purpose of last week’s announcement was to signal that the ECB are analysing QE now so that they are better able to implement more quickly ahead if required. However, ECB Executive Board member Mersch emphasized that at present the ECB isn’t expecting the kind of fat tail risk to the economy which would increase deflation risk requiring some form of QE. The euro is likely to remain strong without more effective ECB monetary policy easing actions being delivered, with the negative impact of QE rhetoric upon the euro already beginning to ease."
Key Quotes
"The euro has strengthened modestly following comments yesterday from ECB Executive Board member Mersch which dampened investor expectations that the ECB will soon implement some form of QE. ECB Executive Board member Mersch stated that “QE is above all a theoretical concept” while stressing that the journey “from theory to implementation is a long way”."
"He also clarified that the purpose of last week’s announcement was to signal that the ECB are analysing QE now so that they are better able to implement more quickly ahead if required. However, ECB Executive Board member Mersch emphasized that at present the ECB isn’t expecting the kind of fat tail risk to the economy which would increase deflation risk requiring some form of QE. The euro is likely to remain strong without more effective ECB monetary policy easing actions being delivered, with the negative impact of QE rhetoric upon the euro already beginning to ease."