29 Apr 2014
Most key event for EZ was… - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained, that perhaps, the most important event was Draghi's comments yesterday to the German parliament.
Key Quotes:
"He was quoted by Bloomberg indicating that although QE was under consideration it was not imminent and relatively unlikely."
"This matches our understanding. The ECB's June meeting is a more likely time frame for new initiatives as the staff forecasts will be updated, and officials may have a clearer handle on the trajectory of price pressures."
"We can accept that some deflation in the periphery is not totally undesirable. It actually shows that the Berlin Consensus is working."
"Deflation can be understood as an internal devaluation that will boost competitiveness, and it is more desirable than an external devaluation. We also recognize the fact that economists, including the IMF, are not forecasting deflation--outright negative CPI readings--for any EMU member but Greece this year."
Key Quotes:
"He was quoted by Bloomberg indicating that although QE was under consideration it was not imminent and relatively unlikely."
"This matches our understanding. The ECB's June meeting is a more likely time frame for new initiatives as the staff forecasts will be updated, and officials may have a clearer handle on the trajectory of price pressures."
"We can accept that some deflation in the periphery is not totally undesirable. It actually shows that the Berlin Consensus is working."
"Deflation can be understood as an internal devaluation that will boost competitiveness, and it is more desirable than an external devaluation. We also recognize the fact that economists, including the IMF, are not forecasting deflation--outright negative CPI readings--for any EMU member but Greece this year."