No ECB Knock-Out Punch: Outlook for week of June 8, 2014
6 Years ago | June 08, 2014 00:00:00
ECB Disappoints
Its hard for me to believe that EURUSD is now back above 1.3600 after a package of policy actions by the ECB last Thursday, When a central bank puts on a severe credit squeeze, the reaction in the past has been violent and immediate. However, this time the ECB is easing policy in a world where policy elsewhere was already easy and liquidity is ample. Thus Draghi's actions are not having an immediate and irreversible impact. This is like pushing on a string, not like standing in front of a freight train. It might take a while for the impact of these new policies to seep into the markets. We feel eventually they will.
One key desired effects presumably must be a weaker EUR because the southe
