ECB: Extension to the programme beyond March is possible today, but improbable - SocGen

Sandeep Kanihama FXStreet Contributor

Kit Juckes, Research Analyst at Societe Generale, suggests that today’s big event could be today’s big non-event as an announcement of an extension to the ECB programme beyond March is possible today, but improbable.

Key Quotes

“More likely, a decision is delayed until December and we get soothing words and a lot of questions at the press conference instead. The market, expecting little, is open to surprises and today, at least, there’s more room for EUR/USD to fall than bounce.

Relative rates/yields suggest a move to 1.08 is about all we can expect unless we get a very big jump in equity volatility. Longer term, we still see the risk of a slow grind lower as a central case and think a bigger, more violent move higher, is being a bigger risk than a big fall (to new lows in EUR/USD).”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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