9 Mar 2015
ECB begins buying; EUR/USD to go below parity - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that the beginning of the ECB’s long-awaited asset purchases should kick off the next leg lower in the EUR.
Key Quotes:
"This week’s ECB meeting made it clear that the ECB’s first priority with this program is to hit the €60bn/month buying target, even if that means more flexibility in hitting capital key targets or the mix of EGBs vs SSAs."
"The market will try to parse whether there is any rhyme or reason in the duration, distribution, or correlation across countries that it can trade on the back of. But the commitment to expanding the ECB’s balance sheet in contrast with the Fed being expected to hike in September supports our call for EUR/USD to fall below parity within the next year."
Key Quotes:
"This week’s ECB meeting made it clear that the ECB’s first priority with this program is to hit the €60bn/month buying target, even if that means more flexibility in hitting capital key targets or the mix of EGBs vs SSAs."
"The market will try to parse whether there is any rhyme or reason in the duration, distribution, or correlation across countries that it can trade on the back of. But the commitment to expanding the ECB’s balance sheet in contrast with the Fed being expected to hike in September supports our call for EUR/USD to fall below parity within the next year."