3 Dec 2014
December ECB is a Case of ‘He Said, She Said’ – TDS
FXStreet (Barcelona) - The TD Securities Research Team doesn’t see the ECB likely to deliver any major expansion or broadening the asset purchase program in December, and cautions that the meeting has ample scope to be quite messy for the market.
Key Quotes
“We expected the ECB would announce new easing measures early in 2015, and speeches from Draghi and others have now laid out the justification that the majority of the Governing Council are comfortable with. But we think the context of Draghi’s action “without delay” comments were intended to signal when the time is ready, not now, and comments by Executive Board Member Lautenschläger were even more explicit that new easing measures were not appropriate yet, in a speech which she broke the typical purdah period ban on speaking on current monetary policy.”
“There is scope for substantial surprise and new information, though, with macro forecasts likely downgraded across the board and a lot of questions still to be answered."
Key Quotes
“We expected the ECB would announce new easing measures early in 2015, and speeches from Draghi and others have now laid out the justification that the majority of the Governing Council are comfortable with. But we think the context of Draghi’s action “without delay” comments were intended to signal when the time is ready, not now, and comments by Executive Board Member Lautenschläger were even more explicit that new easing measures were not appropriate yet, in a speech which she broke the typical purdah period ban on speaking on current monetary policy.”
“There is scope for substantial surprise and new information, though, with macro forecasts likely downgraded across the board and a lot of questions still to be answered."