Back
22 Jan 2015
ECB meeting: Euro to move lower after a short term squeeze higher – Investec
FXStreet (Barcelona) - Jonathan Pryor, head of FX dealing at Investec Corporate and Institutional Treasury, expects euro to move lower and weaken further, supported by the ECB pumping Euro 1trn into the market over the next one and half years.
Key Quotes
"In the short term we risk a squeeze higher in the Euro now all policy is announced and there is no additional stimulus for the market to price in or pre-empty - what traders call ‘buy the rumour, sell the fact’. Once the dust has settled, we expect the Euro to move lower from here as the continued effect of negative deposit rates, combined with the flooding of over Euro 1 trillion extra into the market over the next year and a half, should continue to weaken the single currency."
Key Quotes
"In the short term we risk a squeeze higher in the Euro now all policy is announced and there is no additional stimulus for the market to price in or pre-empty - what traders call ‘buy the rumour, sell the fact’. Once the dust has settled, we expect the Euro to move lower from here as the continued effect of negative deposit rates, combined with the flooding of over Euro 1 trillion extra into the market over the next year and a half, should continue to weaken the single currency."