ECB: why pulling back on the QE reins? -Westpac

By FXStreet FXStreet (Guatemala) – Sean Callow , analyst at Westpac noted how the EUR/USD chopped around either side of 1.0900 then steadied around 1.0870 after the ECB decision and subsequent trade at the end of the week.

Key Quotes:

“ECB President Draghi spoke in NY and said there was no limit to its stimulus tools, and Vice President Constancio said markets got it wrong and hoped markets will correct their reaction when the ECB’s tools are fully appreciated.

A Reuters source story argued that ECB president Draghi’s public dovishness caused a backlash from enough colleagues such that the ultimate easing measures were more cautious than otherwise. Reuters and also later MNI said that the ECB also didn’t want to be too aggressive on QE in case it caused some caution at this month’s FOMC meeting about USD strength.”
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Source:: FX Street