FXstreet.com (Córdoba) - The European Central Bank unveiled specifics of its new bond purchase plan, to be called Outright Monetary Transactions, at today's monetary policy press conference.
"The details follow Mr. Draghi's signals from the early August ECB announcement, and are in line with the details outlined by media reports in recent days", says the Wells Fargo analyst team. "While we acknowledge the ongoing event risk from Europe over the next several weeks, we believe today's ECB announcement leaves the euro on track for a corrective rally towards $1.30 in the near-term".
"Once the market reaches a more balanced view on the euro – in terms of market sentiment and FX positioning – we believe that longer term forces, including economic and monetary/liquidity factors, remain negative, and we see the single currency sliding back to $1.20 or below in the next twelve months", they explain.
"The details follow Mr. Draghi's signals from the early August ECB announcement, and are in line with the details outlined by media reports in recent days", says the Wells Fargo analyst team. "While we acknowledge the ongoing event risk from Europe over the next several weeks, we believe today's ECB announcement leaves the euro on track for a corrective rally towards $1.30 in the near-term".
"Once the market reaches a more balanced view on the euro – in terms of market sentiment and FX positioning – we believe that longer term forces, including economic and monetary/liquidity factors, remain negative, and we see the single currency sliding back to $1.20 or below in the next twelve months", they explain.
