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20 May 2015
EUR hurt by ECB’s headlines – OCBC Bank
FXStreet (Edinburgh) - Emmanuel Ng, FX Strategist at OCBC Bank, noted the impact on the single currency of yesterday’s comments by ECB officials Coeure and Noyer.
Key Quotes
“Reported QE comments from the ECB’s Coeure precipitated a flood of broad dollar strength on Tuesday with the EUR-USD slumping to 1.1118 by late NY”.
“The ECB’s Coeure noted that the recent reversal bunds was not a concern but the rapidity of the reversal was worrying”.
“Crucially, he revealed that the ECB’s asset buying would rise slightly (frontloaded) in May/June while September may witness some back loading as liquidity is expected to improve”.
“The ECB’s Noyer also chimed in later in the session by noting that the ECB was ready to “go further if necessary” to maintain its inflation mandate”.
Key Quotes
“Reported QE comments from the ECB’s Coeure precipitated a flood of broad dollar strength on Tuesday with the EUR-USD slumping to 1.1118 by late NY”.
“The ECB’s Coeure noted that the recent reversal bunds was not a concern but the rapidity of the reversal was worrying”.
“Crucially, he revealed that the ECB’s asset buying would rise slightly (frontloaded) in May/June while September may witness some back loading as liquidity is expected to improve”.
“The ECB’s Noyer also chimed in later in the session by noting that the ECB was ready to “go further if necessary” to maintain its inflation mandate”.