The markets are coming around to seeing QE as imminent in the euro-zone, and the recent report about a plan of 500 billion euros adds a sense of confirmation. When Draghi opens his mouth on January 22nd, can we expect a rally in the euro as QE is already priced in? The team at JP Morgan provides a different argument backed by a nice chart: Here is their view, courtesy of eFXnews: Could ECB QE mark the low in EUR/USD in typical buy-the-rumor-sell-the-fact fashion? Short answer: Unlikely, says JP Moragn. “It is true that Treasury yields exhibited a buythe-rumour-sell-the-fact patterns in that they rallied on average into the four Fed QE announcements and retraced higher thereafter. They same could happen with German bund yields, which is part of the reason we forecast 10-yr Germany around 0.85% by end-2015. But Fed QE did not, on average mark local lows in the dollar, for those thinking technically,” JPM argues. “For those thinking contextually, the main reason to think that that an ECB QE announcement should not market a low in EUR/USD is that such ECB easing will occur alongside Fed tightening,” JPM adds. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next GBPUSD: Turns Higher On Recovery FX Tech Strategy 8 years The markets are coming around to seeing QE as imminent in the euro-zone, and the recent report about a plan of 500 billion euros adds a sense of confirmation. When Draghi opens his mouth on January 22nd, can we expect a rally in the euro as QE is already priced in? The team at JP Morgan provides a different argument backed by a nice chart: Here is their view, courtesy of eFXnews: Could ECB QE mark the low in EUR/USD in typical buy-the-rumor-sell-the-fact fashion? Short answer: Unlikely, says JP Moragn. "It is true that Treasury yields exhibited a buythe-rumour-sell-the-fact patterns… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.