Back
16 Jul 2015
ECB ready to act if unwarranted tightening of policy - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that. overall, today was about verbal intervention by the ECB.
Key Quotes:
"They do not expect a need for action to arise, but they stand ready to do so if necessary.
ECB adds language to prepared remarks to suggest they are mindful of risks but do not see significant negative repercussions for the economy at this stage.
The ECB also announced a €900mn increase in the ELA over the next week for Greece and reminded markets that Greek bonds should be eligible for QE later this year.
With the ECB not providing any significant near-term directional impulse for the EUR, we expect the start of the Fed’s tightening cycle in September to drive EUR/USD lower. We think the down-trend is likely to resume eventually and challenge parity by year-end."
Key Quotes:
"They do not expect a need for action to arise, but they stand ready to do so if necessary.
ECB adds language to prepared remarks to suggest they are mindful of risks but do not see significant negative repercussions for the economy at this stage.
The ECB also announced a €900mn increase in the ELA over the next week for Greece and reminded markets that Greek bonds should be eligible for QE later this year.
With the ECB not providing any significant near-term directional impulse for the EUR, we expect the start of the Fed’s tightening cycle in September to drive EUR/USD lower. We think the down-trend is likely to resume eventually and challenge parity by year-end."