13 Jan 2015
Market focussing on ECB 22nd Jan meeting - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the EUR/USD fell to fresh ground on the downside, extending its year low by 1 pip in the US session.
Key Quotes:
"With no local fundamental news to trigger price action, market attention continues to focus in what the ECB may or may not do next January 22nd".
"A key step towards ECB’s action will take place tomorrow, when the European Court of Justice will give its opinion on the legality of the ECB’s OMT program. Germany has opposed to implementation of such measure, and of course opposes to any form of QE".
"So if the European court rules in favor of the OTM program, the ECB will be one step closer to launch QE next week. In the meantime, policymakers this week have fuelled expectations that a full-blown quantitative easy is now a matter of when after recent inflation figures confirmed the EZ has slipped into deflation".
Key Quotes:
"With no local fundamental news to trigger price action, market attention continues to focus in what the ECB may or may not do next January 22nd".
"A key step towards ECB’s action will take place tomorrow, when the European Court of Justice will give its opinion on the legality of the ECB’s OMT program. Germany has opposed to implementation of such measure, and of course opposes to any form of QE".
"So if the European court rules in favor of the OTM program, the ECB will be one step closer to launch QE next week. In the meantime, policymakers this week have fuelled expectations that a full-blown quantitative easy is now a matter of when after recent inflation figures confirmed the EZ has slipped into deflation".