3 Feb 2014
Flash: ECB faces pressures - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted the pressures mounting up on the ECB.
Key Quotes
“…as inflation has dropped to 0.7% y/y the pressure on the ECB has mounted. Its toolbox is limited, leaving Thursday’s ECB meeting important for any clues as to what path the ECB might take in the future."
"Friday’s rumours that the Bundesbank would not object to end of weekly sterilization of the SMP program marks an important shift from the German. If true it would provide some downward pressure on money markets, bring Europe one step closer to QE, but the size of the program is limited, leaving the impact likely negligible. Today’s PMI manufacturing releases were stronger than expected across Europe, with the Eurozone’s rising to 54".
Key Quotes
“…as inflation has dropped to 0.7% y/y the pressure on the ECB has mounted. Its toolbox is limited, leaving Thursday’s ECB meeting important for any clues as to what path the ECB might take in the future."
"Friday’s rumours that the Bundesbank would not object to end of weekly sterilization of the SMP program marks an important shift from the German. If true it would provide some downward pressure on money markets, bring Europe one step closer to QE, but the size of the program is limited, leaving the impact likely negligible. Today’s PMI manufacturing releases were stronger than expected across Europe, with the Eurozone’s rising to 54".