Buying corporate debt is certainly a controversial issue, but it seems that it still appears on the agenda. After the initial reports yesterday, the topic certainly stays on the agenda. ECB member Luc Coene said that while there is no concrete proposal on buying bonds, he did say it has already been mentioned by “some” and that in order to “reach the volumes that we have in mind”, also this is part of the discussion.
EUR/USD is not waiting for a concrete discussion: it already hit support at 1.27 before bouncing back up.
Even if the ECB refrains from buying corporate bonds and finds another financial scheme, it is clear that Draghi and his colleagues will do “everything they can” in order to expand the balance sheet, and when the balance grows, more euros are printed and the currency suffers.
We will hopefully get some more “concrete” answers to some of the questions in the upcoming meeting on November 6th, and inflation data should also keep the members awake at night.
More: Sell EUR/USD On Failure To Break 1.29 – SocGen
Here is how it looks on the chart:
Share
