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23 Jan 2015
FXStreet: ECB QE: Euro driven lower, equities higher – Tip Tv
FXStreet (Barcelona) - In today’s video, FXStreet’s Craig Drake and the Tip Tv Team discuss about the ECB's bond buying program, further noting that the cheap liquidity has pushed equities higher, and driven euro lower to 12 year lows.
Key Quotes
“Markets this morning continue to be dominated by the announcement from the European Central Bank yesterday that it would begin EUR60bn a month of asset purchases, encompassing the existing ABS programme and including sovereign debt.”
“Additional eligibility criteria will be applied in the case of countries under an EU/IMF adjustment programme meaning an exclusion of Greece and Cyprus.”
“The programme - initially pencilled to run until September 2016 but in practice open ended - is worth an initial EUR1.1 trillion.”
“The announcement has pushed the euro below 12-year lows and helped drive up equity markets across the board - the driver seems to be that QE is QE and equity markets are agnostic as to whether it is being provided by the ECB, the Fed or the BoE.”
Key Quotes
“Markets this morning continue to be dominated by the announcement from the European Central Bank yesterday that it would begin EUR60bn a month of asset purchases, encompassing the existing ABS programme and including sovereign debt.”
“Additional eligibility criteria will be applied in the case of countries under an EU/IMF adjustment programme meaning an exclusion of Greece and Cyprus.”
“The programme - initially pencilled to run until September 2016 but in practice open ended - is worth an initial EUR1.1 trillion.”
“The announcement has pushed the euro below 12-year lows and helped drive up equity markets across the board - the driver seems to be that QE is QE and equity markets are agnostic as to whether it is being provided by the ECB, the Fed or the BoE.”