Home ECB: PEPP expansion to lift EUR/USD – TDS
FXStreet News

ECB: PEPP expansion to lift EUR/USD – TDS

Economists at TD Securities explain how the EUR/USD pair, which trades just above the 1.12 level, could react to four different scenarios after the ECB meeting tomorrow at 11:45 GMT. A PEPP expansion may actually boost the euro further near-term if the ECB adds to investor confidence.


  • Yohay Elam’s ECB Preview
  • Joseph Trevisani’s ECB Preview

Key quotes

“More Hawkish (10%):No further policy easing as ECB delays its Pandemic Emergency Purchase Programme (PEPP) decision until Sept. EUR/USD at 1.1020.”

“Hawkish (30%): €250-300 billion for PEPP. Door open to more as needed. Confirms reinvestments. EUR/USD at 1.1115.”

“Base Case (50%): Rates on hold. ECB adds €500 billion to PEPP, buying until ‘the first half of 2021.’ EUR/USD at 1.1255.”

“Dovish (10%): ECB doubles PEPP, adding €750 billion, running to mid-2021. Reinvestments for PEPP to continue until just before the first rate hike. EUR/USD at 1.1305.”


FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.