Back
5 Jun 2014
ECB and EUR year end forecast, 1.2800 - HSBC
FXStreet (Guatemala) - Analysts at HSBC Bank plc noted that Draghi delivered some forward guidance.
Key Quotes:
"This included a commitment to keep rates at or below the current level for some time, thereby leaving the door open to another rate cut".
"In addition, Draghi has also send a clear signal that further unconventional easing is possible, including an apparent greater appetite for future asset purchases if required. In effect, he has delivered more than expected while leaving the potential for even more".
"Our year-end forecast for EUR/USD remains 1.28 and today's developments are entirely consistent with this view. The market likes to doubt the ECB's willingness to act aggressively, but once again, the central bank has shown its appetite for action when required".
Key Quotes:
"This included a commitment to keep rates at or below the current level for some time, thereby leaving the door open to another rate cut".
"In addition, Draghi has also send a clear signal that further unconventional easing is possible, including an apparent greater appetite for future asset purchases if required. In effect, he has delivered more than expected while leaving the potential for even more".
"Our year-end forecast for EUR/USD remains 1.28 and today's developments are entirely consistent with this view. The market likes to doubt the ECB's willingness to act aggressively, but once again, the central bank has shown its appetite for action when required".