The euro was on track to end lower

Good Morning,

- The euro trade near its lowest level since September 2003 at $ 1.1295, after suffering a massive decline yesterday as the ECB launched a stimulus programme that would pump hundreds of billions in new money.

- Now all eyes on Greek elections on Sunday Jan. 25. A win by the leftist Syriza party, which has pulled ahead on opinion polls, could trigger a standoff with the EU/IMF lenders and another sell off in Euro.

- The greenback benefited from the euro's weakness and hovered near an 11-year high. The dollar index on Thursday picks to 94.497, its highest level since September 2003.

- Bank of Italy’s Visco says ECB QE uses "legitimate monetary policy tools". ECB move aims for price stability, “we have to share risks”. EU is not a fiscal union ”, you never pre-commit” on a plan’s timing. Eurozone “far away” from inflation target. Given limitations of sov bond issues, can buy Greek bonds in QE programme probably from June. ECB action will not interfere with Greek elections.

- Finnish FinMin Rinne: ECB QE cannot be only way to boost growth.

- The latest flash France PMI ® data signaled a further slight contraction of private sector output at the start of 2015 . The seasonally adjusted Markit Flash France Composite Output Index , recorded 49.5 in January. This was down fractionally from December ’s reading of 49.7 and pointed to a further marginal decline in private sector activity.

- ECB President Mario Draghi said on Thursday that the asset purchases "will in any case be conducted until we see a sustained adjustment in the path of inflation which is consistent with our aim of achieving inflation rates below but close to 2 percent over the medium term."

- The euro was on track to end lower for a sixth straight week. It has dropped roughly 9 percent in the past six weeks, its worst performance since mid-2010.

- Also the euro languished near a seven-year low versus sterling and last stood near 75.40 pence, its lowest level since early 2008.

- HSBC on EUR/USD: By rights, some of the ECB’s action should already be in the price of EUR-USD, which has fallen from 1.40 since hints of QE by the ECB became more blatant since mid-2014. It discourages us from embracing the more sensationalist forecasts of parity for EUR-USD, for example. It has been all about the EUR so far, but once you get below 1.10 then the implications for the US economy start becoming dominant and there could be some US policy push back against excessive USD strength. Nonetheless, for now, the size of the package and the possibility that it could be extended until the inflation mandate is met should mean the EUR continues to come under pressure. We look for EUR-USD to finish 2015 at 1.09 compared to our previous forecast of 1.15.

- cnbc: is the Bank of Japan's Kuroda losing credibility? BOJ Governor Haruhiko Kuroda has frustrated investors with his habit of surprising markets, and now the central bank's latest inflation forecast has some questioning his credibility. "Now that the BOJ has admitted to failing to meet its target and put its credibility on the line, the risk is that another round of asset purchases could provoke a negative reaction," said Hiroaki Hayashi, at Fukokushinrai Life Insurance director of investment management, who expects the BOJ to ease further in April. On Wednesday, the BOJ cut its inflation forecast for the fiscal year starting in April 2015 to 1.0 percent, half of the 2 percent target it set nearly two years ago.

- Watch today: European PMIs, US home sales.

Have a nice Weekend !