ECB takes further steps, euro rises – Nordea
|The ECB expanded its Pandemic Emergency Purchase Programme (PEPP) by €600 billion and extended its horizon to at least the end of June 2021. The news pushed bond yields lower and strengthened the EUR, analysts at Nordea inform.
Key quotes
“The size of the PEPP was increased by €600 billion to a total of €1350 billion, slightly higher than most were expecting.”
“The horizon of the net purchases under the PEPP was extended to at least the end of June 2021 and in any case until the coronavirus crisis phase is over.”
“The maturing principal payments from PEPP will be reinvested until at least the end of 2022.”
“The financial markets showed mostly a positive response to the package. The news pushed bond yields lower and narrowed intra-Euro-area spreads, while equity prices and the EUR rose.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.