5 Mar 2015
BNPP: Will ECB be able to source EUR 60bn of assets per month? – eFXnews
FXStreet (Barcelona) - The eFXnews Team shares BNP Paribas’s view regarding today’s ECB meeting, the expected change to growth forecasts and probable reaction by EUR/USD.
Key Quotes
“Much of Thursday’s ECB policy announcement is likely to be about clarifying the details of the QE programme announced in January.”
“One aspect that has drawn market concern in particular is whether the ECB will be able to source EUR 60bn of assets per month.”
“We expect Draghi to reassure the markets on that front as any wavering on the total amount would be very damaging for the credibility of QE.”
“Outside of the technicalities of asset purchases, markets will also focus on the updated staff macroeconomic projections which will for the first time extend to 2017. We are looking for the mid-points of the CPI forecast to remain below 2% over the whole forecast period and suspect Draghi will be careful not to overplay the recent improvement in economic data in his comments.”
“While EURUSD did slip to a new 11-year low on Wednesday, we see the currency entering a period of more gradual ‘flow-driven’ downtrend as opposed to the previous faster ‘announcement-driven’ move.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“Much of Thursday’s ECB policy announcement is likely to be about clarifying the details of the QE programme announced in January.”
“One aspect that has drawn market concern in particular is whether the ECB will be able to source EUR 60bn of assets per month.”
“We expect Draghi to reassure the markets on that front as any wavering on the total amount would be very damaging for the credibility of QE.”
“Outside of the technicalities of asset purchases, markets will also focus on the updated staff macroeconomic projections which will for the first time extend to 2017. We are looking for the mid-points of the CPI forecast to remain below 2% over the whole forecast period and suspect Draghi will be careful not to overplay the recent improvement in economic data in his comments.”
“While EURUSD did slip to a new 11-year low on Wednesday, we see the currency entering a period of more gradual ‘flow-driven’ downtrend as opposed to the previous faster ‘announcement-driven’ move.”
This content has been provided under specific arrangement with eFXnews.