The European Central Bank has been hinting about outright Quantitative Easing (QE) as a possibility, and this includes president Mario Draghi, who mentioned it. However, some of his colleagues have played it down. It now seems more like a question of “when” rather than “if”: ECB Vice President Vitor Constancio talks about gauging it during Q1, according to the advance of balance sheet expansion. The euro is on the back foot and sovereign bonds already seem to be pricing it. Constancio not only mentioned the timing but prepared the justification: inflation threatens to continue on the low side on the background of low inflation. The sovereign bond buys would be proportional to each member’s economy. Buying bonds would be a “pure” monetary policy decision that would influence inflation expectations and the exchange rate. Speaking of he exchange rate, EUR/USD is sliding in range and trading at 1.2455, still above support at 1.2440 and still riding on weak US data. If we look at European bonds, we see Spanish 10 year bond yields at 1.92%, significantly below 2.226% in the US. Italy’s 10 year yields are at 2.14%. Germany’s yields continue digging lower, now at 0.75%. The yield gap between the US and Europe is also supporting the dollar versus the euro. 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 CAD: Hitching A Ride – Credit Agricole Yohay Elam 8 years The European Central Bank has been hinting about outright Quantitative Easing (QE) as a possibility, and this includes president Mario Draghi, who mentioned it. However, some of his colleagues have played it down. It now seems more like a question of "when" rather than "if": ECB Vice President Vitor Constancio talks about gauging it during Q1, according to the advance of balance sheet expansion. The euro is on the back foot and sovereign bonds already seem to be pricing it. Constancio not only mentioned the timing but prepared the justification: inflation threatens to continue on the low side on the… 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.