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12 Mar 2014
Flash: EUR remains supported - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, observes the EUR remains well supported by the ECB's balance sheet.
Key Quotes
"The euro has lost some upward momentum early this week following more dovish comments from ECB members. ECB Vice President Constancio stated yesterday that the market hasn’t fully understood the ECB’s policy message from last week’s meeting."
"He emphasized that the ECB’s forward guidance was made more precise in relation to the existence of economic slack which should help to provide reassurance that low rates will remain place for a long time even if the economy continues to strengthen ahead".
"Still, ECB monetary policy continues to be perceived as relatively tight given that their balance sheet continues to shrink providing support for the euro."
Key Quotes
"The euro has lost some upward momentum early this week following more dovish comments from ECB members. ECB Vice President Constancio stated yesterday that the market hasn’t fully understood the ECB’s policy message from last week’s meeting."
"He emphasized that the ECB’s forward guidance was made more precise in relation to the existence of economic slack which should help to provide reassurance that low rates will remain place for a long time even if the economy continues to strengthen ahead".
"Still, ECB monetary policy continues to be perceived as relatively tight given that their balance sheet continues to shrink providing support for the euro."