8 Jun 2015
ECB’s QE to remain unchanged – Rabobank
FXStreet (Edinburgh) - Jane Foley, Senior Currency Analyst at Rabobank, sees the current ‘quantitative easing’ programme by the ECB to remain unchanged for the time being.
Key Quotes
“Without more structural reform in the region’s largest economies such as Spain, France and Italy there is risk that the Eurozone economy could continue to perform below potential for a prolonged period. This argues for continued monetary policy stimulus”.
“The fact that the recent uptick in Eurozone inflation is being led by higher input costs which could eat into consumers’ incomes rather than stronger demand is another reason for the ECB to maintain its commitment to QE”.
“We expect Bund yields to be pressured lower in the coming months under the weight of the asset purchase programme and that this will in turn weigh on the EUR in the second half of the year”.
“We expect EUR/USD will moves towards 1.08 on a 3 month before edging lower ahead of the December FOMC”.
Key Quotes
“Without more structural reform in the region’s largest economies such as Spain, France and Italy there is risk that the Eurozone economy could continue to perform below potential for a prolonged period. This argues for continued monetary policy stimulus”.
“The fact that the recent uptick in Eurozone inflation is being led by higher input costs which could eat into consumers’ incomes rather than stronger demand is another reason for the ECB to maintain its commitment to QE”.
“We expect Bund yields to be pressured lower in the coming months under the weight of the asset purchase programme and that this will in turn weigh on the EUR in the second half of the year”.
“We expect EUR/USD will moves towards 1.08 on a 3 month before edging lower ahead of the December FOMC”.