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20 May 2015
Markets content after recent ECB headlines – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Jens Pedersen reviewed yesterday’s comments of ECB’s B.Coeure.
Key Quotes
“In a speech held on Monday and released yesterday morning ECB executive board member Benoit Coeure surprised the markets by saying that the ECB intends to increase its asset purchases in May and June, so it can purchase less in July and August when market liquidity is usually lower”.
“He further said that, if needed, the frontloading of purchases could be complemented by backloading of purchases in September”.
“The fine-tuning of ECB’s asset purchases does not change the total size of the current programme but it does underline that the ECB is taking into account the overall functioning of the euro-area bond market”.
“The news was welcomed by the markets – it sent EUR/USD below 1.12 and pushed yields on European government bonds down”.
Key Quotes
“In a speech held on Monday and released yesterday morning ECB executive board member Benoit Coeure surprised the markets by saying that the ECB intends to increase its asset purchases in May and June, so it can purchase less in July and August when market liquidity is usually lower”.
“He further said that, if needed, the frontloading of purchases could be complemented by backloading of purchases in September”.
“The fine-tuning of ECB’s asset purchases does not change the total size of the current programme but it does underline that the ECB is taking into account the overall functioning of the euro-area bond market”.
“The news was welcomed by the markets – it sent EUR/USD below 1.12 and pushed yields on European government bonds down”.