FXstreet.com (Barcelona) - After the ECB shocker, Nomura now expects market pressure to increase rapidly, "pushing Spain and Italy to activate the EFSF over the coming week or so," forcing the ECB into some kind of action, they suggest. "This next leg of the crisis could prove more pronounced given the size of the bond markets involve" Nomura adds.
Nomura expands: "ECB new intervention tool that will target distressed sovereigns once they have called for help under the EFSF/ESM. This new tool comes close to what we called a supercharged SMP but not near enough to make us feel reassured. The lack of preparedness of the toolkit and its limitations are likely to bring further market deterioration."
Nomura expands: "ECB new intervention tool that will target distressed sovereigns once they have called for help under the EFSF/ESM. This new tool comes close to what we called a supercharged SMP but not near enough to make us feel reassured. The lack of preparedness of the toolkit and its limitations are likely to bring further market deterioration."
