1.40 here we come
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Funny how three years later Draghi couldn't care less about the "credibility of the institution." However, the issue with Article 123 still remains. Which is why we were not at all surprised to find out that none other than the bank that spawned Mario Draghi said not to expect a European QE until 2015 at the earliest... if at all.
From Bloomberg:
[*=1]Goldman’s Andrew Wilson Says QE in Europe a 2015 Story If at All
[*=1]European economy would have to weaken significantly before QE comes into play, said Andrew Wilson, co-head of Global Fixed Income and Liquidy management team at Goldman Sachs Asset Management.
[*=1]Says Draghi has foreshadowed policy easing at next meeting, expects ECB to cut rates 1-2 times before they look to other methods such as an LTRO
[*=1]Says if other methods don’t work it would “ultimately have to be QE”
[*=1] Wilson was speaking at media roundtable in London
Of course, the biggest irony here is that should the algos and few residual non-manipulated FX traders left continue to push the EURUSD lower, then the ECB will have zero incentive at all to act, which of course will send the EURUSD soaring right back up to 1.40. Which, further as Deutsche warned, would "shatter" the ECB's credibility... but who really thinks any central bank has any credibility left?
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