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8 Jan 2015
Draghi may disappoint by postponing QE – Growth Aces
FXStreet (Barcelona) - The Growth Aces Research Team notes that Draghi may disappoint the markets by postponing QE as weakening EUR might ease monetary conditions and improve competitiveness of exports, which may lead EUR/USD to jump higher.
Key Quotes
“The EUR is under pressure of firming expectations the ECB will announce full-blow quantitative easing on January 22 and political uncertainty in Greece that holds earlier elections on January 25.”
“In our opinion ECB President Mario Draghi may disappoint the markets and postpone the decision on QE due to weakening EUR that eases monetary conditions and improves competitiveness of exports. In such a scenario a significant jump of the EUR/USD cannot be excluded.”
“Even if the ECB takes further steps to support economic activity, the EUR/USD may react in strong profit taking on recent EUR-selling positions.”
“Our EUR/USD long position reached the stop-loss at 1.1790. The very short-term outlook is strongly bearish now and in our opinion the EUR/USD is likely to break below lows from 2005. Our EUR/USD trading strategy is to sell at 1.1845. If the order is filled the target will be 1.1620.”
Key Quotes
“The EUR is under pressure of firming expectations the ECB will announce full-blow quantitative easing on January 22 and political uncertainty in Greece that holds earlier elections on January 25.”
“In our opinion ECB President Mario Draghi may disappoint the markets and postpone the decision on QE due to weakening EUR that eases monetary conditions and improves competitiveness of exports. In such a scenario a significant jump of the EUR/USD cannot be excluded.”
“Even if the ECB takes further steps to support economic activity, the EUR/USD may react in strong profit taking on recent EUR-selling positions.”
“Our EUR/USD long position reached the stop-loss at 1.1790. The very short-term outlook is strongly bearish now and in our opinion the EUR/USD is likely to break below lows from 2005. Our EUR/USD trading strategy is to sell at 1.1845. If the order is filled the target will be 1.1620.”