7 Apr 2014
EUR/USD resilient after ECB - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, notes the current resilience of the EUR/USD despite the dovish ECB.
Key Quotes
"The financial market reaction to last week’s ECB monetary policy meeting at which it signalled that it is moving closer to implementing unconventional policy measures such as negative deposit rates and/or some form of QE to combat downside risks from persistently low inflation has been very limited. Short-term euro-zone yields and the euro have declined only very modestly while the euro-zone sovereign credit risk premium has tightened further."
"The ECB will likely have to back up its rhetoric with policy action for the euro to weaken materially. The latest IMM report revealed that speculators continue to favour modest long euro positions."
Key Quotes
"The financial market reaction to last week’s ECB monetary policy meeting at which it signalled that it is moving closer to implementing unconventional policy measures such as negative deposit rates and/or some form of QE to combat downside risks from persistently low inflation has been very limited. Short-term euro-zone yields and the euro have declined only very modestly while the euro-zone sovereign credit risk premium has tightened further."
"The ECB will likely have to back up its rhetoric with policy action for the euro to weaken materially. The latest IMM report revealed that speculators continue to favour modest long euro positions."