25 Sep 2013
Flash: <strong><a href="http://www.fxstreet.com/technical-studies/currencies/eurusd/">EUR/USD</a></strong> - ECB easing back in discussion - Societe Generale
FXstreet.com (Athens) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that in Europe, the possibility of further ECB easing is back under discussion.
Key Quotes
“It isn't imminent, by any means but the issue highlights two obvious points. Firstly, Europe needs and will have lower rates for longer than anyone else. Secondly, Europe's financial system can't come off. Life-support.”
“Without LTRO, Spain and Italy would find issuing debt harder and much more expensive. And the banks in the periphery would find funding themselves incredibly difficult. The net result is to cap the Euro and to make receiving short-dated euros very attractive.”
Key Quotes
“It isn't imminent, by any means but the issue highlights two obvious points. Firstly, Europe needs and will have lower rates for longer than anyone else. Secondly, Europe's financial system can't come off. Life-support.”
“Without LTRO, Spain and Italy would find issuing debt harder and much more expensive. And the banks in the periphery would find funding themselves incredibly difficult. The net result is to cap the Euro and to make receiving short-dated euros very attractive.”