Commenting on the European Central Bank's (ECB) policy announcements today, TD Securities analysts said that a 10 basis points rate cut and €20 billion per month quantitative easing (QE) was hawkish on the surface but noted that the ECB's monetary policy was now linked explicitly to the inflation goals.
"We don't think that the ECB has delivered enough. We think it will have to deliver at least two more 10bps rate cuts in December and March, as well as to augment the pace of QE to €40bn/month in March once the global macro environment worsens further."
"The ECB's September policy decision saw a notable degree of intraday volatility. Despite that, however, key technical thresholds held - in both directions."
"This lack of a strong directional cue suggests investors will pivot quickly to next week's FOMC meeting for guidance. The ECB's policy measures may be "adequate", but we think that leaves the market in need of fresh catalysts to provide more of push to escape recent ranges."
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.