ECB risks ahead - BAML

FXStreet (Guatemala) - Analysts at Bank of america Merrill Lynch explained that they are worried a large ECB QE package in Jan will mark "peak QE expectations" leaving Europe/global risk markets in Q1 solely dependent on growth & EPS.

Key Quotes:

"And global govt bond yields could rise: fixed income markets have heavily discounted ECB QE (stock of negatively yielding Euro debt now stands at a staggering €1.2 trillion); in 3-months following Fed QE announcements 30-year Treasury yield rose on average 50bps".

"Volatility the only true winner if low growth, lower liquidity expectations cause investors to discount "policy failure" in coming months".