EUR: ECB Strikes A Compromise Between Hawks & Doves – ING


The European Central Bank announced tapering but laid out so many conditions and caveats that sent the euro sharply lower. What’s next?

Here is their view, courtesy of eFXdata:

ING Research discusses the reaction to today’s ECB policy decision and thinks that the meeting outcome gives something for both hawks and doves.

“This is, at least partly, an unexpected communication twist. The ECB just took another important step towards a gentle end of QE. In fact, the ECB just announced that it “anticipates” an extension of QE from September to December at 15bn euro per month, from currently 30bn, before ending the net purchases in December. This is not a decision per se but a declaration of intent,” ING notes.

“From no discussion of the policy outlook six weeks ago to an important step towards the end of QE, even though the macro environment has become anything but more solid.

Today’s decision is a truly Solomonic compromise between the hawks and the doves. The hawks finally got their end-date for QE, while the doves still have their open door for more if needed. Nicely done,” ING adds.

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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 the 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.

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