-
Week Ahead: BoC, UK GDP, Greece, Buy USD Dips, Stay Short EUR/USD
The EUR was under pressure for most of the week, partly on the back of ECB Executive Board member Benoît Cœuré’s comment that ECB QE will be frontloaded this month. Although largely a reaction to more muted seasonal liquidity conditions, the latest news flow was enough to push short-term liquidity expectations higher, to the detriment of short-term rates and the single currency. Regardless of stabilising price developments, the ECB is unlikely to turn less aggressive anytime soon, at least until rising inflation expectations are due to improving domestic conditions rather than higher oil prices. Elsewhere, ... (full story)