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19 May 2015
EUR/USD dropped 1% lower - Wakey-wakey!! - TDS
FXStreet (Guatemala) - Richard Kelly, Head of Global Strategy at TD Securities noted the freak move sin the market after a wake up call was announced to markets from ECB member Coeuré that sent the euro 1.5% lower today.
Key Quotes:
"The ECB’s Coeuré woke up a sleepy market with an announcement that the ECB would be “moderately” front-loading QE purchases in May and June."
"The reasoning was to avoid the lack of liquidity in July and August, with the chance they also then backload some further buying into September."
"At face value, it seems a fairly uncontroversial tweak to the modalities of QE, meant to avoid the inevitable criticisms that would have been directed at the ECB come summer if QE showed signs of pressuring EGB yields lower given the lack of any new issuance over July and August."
Key Quotes:
"The ECB’s Coeuré woke up a sleepy market with an announcement that the ECB would be “moderately” front-loading QE purchases in May and June."
"The reasoning was to avoid the lack of liquidity in July and August, with the chance they also then backload some further buying into September."
"At face value, it seems a fairly uncontroversial tweak to the modalities of QE, meant to avoid the inevitable criticisms that would have been directed at the ECB come summer if QE showed signs of pressuring EGB yields lower given the lack of any new issuance over July and August."