3 Dec 2014
EUR/USD pair likely to move higher post ECB – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, notes that the EUR/USD pair will likely move higher post the ECB meeting as the market seems to have already priced-in the bond purchase program.
Key Quotes
“As per the Reuters survey, most economists are not expecting the ECB to further loosen its already ultra-easy monetary policy tomorrow.”
“Moreover, with EUR/USD at two-year lows and benchmark bond yields at record lows in the Eurzone, it appears that the markets have already priced-in a sovereign bond purchase program.”
“Hence, the EUR/USD pair is likely to gain on “sell the rumor, buy the fact” trade even if the ECB does hint at sovereign QE.”
“Meanwhile, ECB’s failure to meet the market expectations is likely to push the EUR/USD sharply higher to 1.26 levels.”
Key Quotes
“As per the Reuters survey, most economists are not expecting the ECB to further loosen its already ultra-easy monetary policy tomorrow.”
“Moreover, with EUR/USD at two-year lows and benchmark bond yields at record lows in the Eurzone, it appears that the markets have already priced-in a sovereign bond purchase program.”
“Hence, the EUR/USD pair is likely to gain on “sell the rumor, buy the fact” trade even if the ECB does hint at sovereign QE.”
“Meanwhile, ECB’s failure to meet the market expectations is likely to push the EUR/USD sharply higher to 1.26 levels.”