ECB extends asset purchase scheme by 9 months to December 2017 or beyond. Cuts monthly purchases from €80bn to €60bn after March.
The Euro exchange rate complex is forecast to rise as a result of today’s European Central Bank decision according to the base-case scenario posited by Kathleen Brooks at City Index.
Market-watchers have been discussing the outcome of the Italian Election and its impact on the Euro, we consider two contrasting views.
The EUR/USD pair is expected to weaken because of a mixture of pro-Dollar inflows and Euro-negative political risk.
Calls for EUR/USD to plummet to parity are unlikely to materialize claim two leading analysts who see recoveries in EUR/USD as a more likely short-term outcome.
The Dollar may well resume its triumphal march higher whilst the Euro remains on the rack of political uncertainty, as the coming week unfolds.
EUR/USD should continue devaluing to its previous 1.04 lows if the Italian referendum returns a majority for “No” as polls currently suggest.
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