ECB: Dec easing on the cards - TDS

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - Analysts at TD Securities explained that overall, the think today clearly confirmed their forecast from August that the ECB would ease further in December.

    Key Quotes:

    "Rather than explicitly increasing the size of monthly purchases by €20bn and extending the program to December 2016, though, we now think it is more likely the ECB tries to get a similar impact by moving to QE infinity and leave the end date premised only on when they feel they are likely to achieve their goals.

    And while before we simply saw good risk/reward in being positioned for rate cuts given a 50% chance, we think a cut of 15-20bps in December is now likely, with an outside chance of a further 20bps of easing beyond that. This means that at a minimum, fair value for schatz should be around the –45 to 50bps range."
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