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The extension was longer and EURUSD has fallen more and “maybe beyond” is bearish – all about Draghi speech though
EURUSD still near session lows at 1.1754, EURGBP 0.8901 EURJPY 133.74
Highlights From Opening Statement
From Jan, net asset purchases intended to continue at 30 billion pace until September or beyond
If outlook becomes less favorable, we stand ready to increase purchases
Domestic price pressures remain muted
Ample degree of monetary policy stimulus is still necessary
Economic expansion continues to be solid and broad based
Latest survey data point to ‘unabated’ expansion in H2
Construction investment has strengthened
Notes broad-based global expansion
Risks remain broadly balanced
Notes FX a downside risk
Wage growth has increased somewhatQ&A
As of January, the ECB will publish monthly redemptions and reinvestments
We didn’t discuss composition of balance sheet
Governing council stressed unabated growth momentum
Real disposable income is increasing, mostly due to gains in employment
There were some different views on different aspectsThe stock of assets has become more important than the flow
We didn’t discuss the parameters or limitsDecision was not unanimous
Would characterize decisions between as broad consensus on some issues to a large majority on othersThere were different views about whether we should have announced an end date
The ‘large majority’ of members preferred to keep bond buys open endedInterpret it all as ECB doesn’t want to hurt recovery momentum, steady as we go, high euro may become an issue and taper at our own pace thereto.
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