9 Apr 2014
QE not a done deal for EZ - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained details in respect of the Euros decent post ECB.
Key Quotes
"At his press conference last week, ECB President Draghi played up the risk of QE and then the following day a German paper leaked a story of the modeling of as much as a 1 trillion euro program. The euro fell to its lowest level since late-February before the weekend."
"Yesterday saw a push back from different ECB officials, making it clear that QE was not a done deal. Yet a few weeks ago, Weidmann’s comments suggested that the Bundesbank would drop its objection to stopping sterilization of the SMP purchases."
"It did not mean that the ECB is going to do this. These are tactical moves, not strategic."
"This is standard practice. Resist an action."
"Then “compromise” and accept the action but resist the timing or the particular tool. Rinse and repeat."
"This is to say that Draghi has not yet achieved a consensus for additional unorthodox measures. We think it will take a smaller than expected rise in April CPI and May to raise the odds of June action."
Key Quotes
"At his press conference last week, ECB President Draghi played up the risk of QE and then the following day a German paper leaked a story of the modeling of as much as a 1 trillion euro program. The euro fell to its lowest level since late-February before the weekend."
"Yesterday saw a push back from different ECB officials, making it clear that QE was not a done deal. Yet a few weeks ago, Weidmann’s comments suggested that the Bundesbank would drop its objection to stopping sterilization of the SMP purchases."
"It did not mean that the ECB is going to do this. These are tactical moves, not strategic."
"This is standard practice. Resist an action."
"Then “compromise” and accept the action but resist the timing or the particular tool. Rinse and repeat."
"This is to say that Draghi has not yet achieved a consensus for additional unorthodox measures. We think it will take a smaller than expected rise in April CPI and May to raise the odds of June action."