7 Sep 2015
ECB’s QE2 on the cards, EUR to grind lower – TDS
FXStreet (Edinburgh) - Strategists at TD Securities expected the single currency to remain heavy and the ECB to intensify its QE programme.
Key Quotes
“While growth prospects remain largely unchanged—with expectations for the economy to continue expanding at or just above trend—inflation prospects have deteriorated considerably as oil prices have tracked lower”.
“Consequently the ECB’s inflation projections have been revised down significantly, with our base case now calling for expanded and extended QE to be announced in at the December policy meeting”.
“The renewed threat of ECB QE caps the EUR and refocuses attention on downside risks”.
“Inflation is likely to head lower and the region is vulnerable to slowing global growth”.
“EUR benefits from slowly improving EZ growth and hefty BoP inflows, but monetary policy divergence is front and centre again”.
“EURUSD will be driven mostly by Fed considerations but look for EUR to underperform on select crosses - especially against SEK and GBP”.
Key Quotes
“While growth prospects remain largely unchanged—with expectations for the economy to continue expanding at or just above trend—inflation prospects have deteriorated considerably as oil prices have tracked lower”.
“Consequently the ECB’s inflation projections have been revised down significantly, with our base case now calling for expanded and extended QE to be announced in at the December policy meeting”.
“The renewed threat of ECB QE caps the EUR and refocuses attention on downside risks”.
“Inflation is likely to head lower and the region is vulnerable to slowing global growth”.
“EUR benefits from slowly improving EZ growth and hefty BoP inflows, but monetary policy divergence is front and centre again”.
“EURUSD will be driven mostly by Fed considerations but look for EUR to underperform on select crosses - especially against SEK and GBP”.