Following ECB's full-blown QE announcement, the FX Team at TDS has revised their EURUSD target, now expecting the exchange rate to fall to 0.96 by end-2015.
Key Quotes
"The ECB has left their tepid convictions on asset purchases, and especially government bonds, in the rear view mirror."
"They have now firmly committed to buy €60bn per month across ABS, covereds, government, corporates, and European agencies until end-September 2016 and beyond until inflation is consistent with target."
"The most surprising move on the day was the strong rally in bunds which initially lagged but almost made up all the ground on the day on the periphery as the duration being sucked out of the market is significant as the ECB will buy linkers, 2-30y maturities, and negative yields."
"This reinforces EURUSD as the stress reliever to any further macro disappointment and we revise our target and see EURUSD falling to 0.96 by end-2015."
Key Quotes
"The ECB has left their tepid convictions on asset purchases, and especially government bonds, in the rear view mirror."
"They have now firmly committed to buy €60bn per month across ABS, covereds, government, corporates, and European agencies until end-September 2016 and beyond until inflation is consistent with target."
"The most surprising move on the day was the strong rally in bunds which initially lagged but almost made up all the ground on the day on the periphery as the duration being sucked out of the market is significant as the ECB will buy linkers, 2-30y maturities, and negative yields."
"This reinforces EURUSD as the stress reliever to any further macro disappointment and we revise our target and see EURUSD falling to 0.96 by end-2015."
