Alright here we go, listened to whole ECB conference here is my take on it:
QE comming. When? January, February or March. Most likely February i think.
Reasons why his statements clearly hint on QE, they mainly came from second part of conference on questions part:
-he answered policy of ECB to follow 2% inflation is absolutely priority, as current inflation is 0.5% with expectations for 2015 to not go above 1%, only mandate is to cut rates or QE to increase inflation. He replied rates are already very low and they have no intention to cut at moment, therefore QE is the only way.
-he was asked what is his opinion that Germany thinks QE is ilegal, his reply was if it would be ilegal we would not be considering and talking about it, with other words he pretty much gives a crap what BundesBank thinks.
-if QE would come how would it look, his reply is depending on what kind of QE we will design. Quite straightforward hint.
-they would consider buying non EUR denominated assets, which i was saying all along this QE could also be QE for USA (eg treasuries).
So 2600 EU is short, 2500 EU is short, and anything bellow is short. 2500 and above could be short term longs until conference.
QE comming. When? January, February or March. Most likely February i think.
Reasons why his statements clearly hint on QE, they mainly came from second part of conference on questions part:
-he answered policy of ECB to follow 2% inflation is absolutely priority, as current inflation is 0.5% with expectations for 2015 to not go above 1%, only mandate is to cut rates or QE to increase inflation. He replied rates are already very low and they have no intention to cut at moment, therefore QE is the only way.
-he was asked what is his opinion that Germany thinks QE is ilegal, his reply was if it would be ilegal we would not be considering and talking about it, with other words he pretty much gives a crap what BundesBank thinks.
-if QE would come how would it look, his reply is depending on what kind of QE we will design. Quite straightforward hint.
-they would consider buying non EUR denominated assets, which i was saying all along this QE could also be QE for USA (eg treasuries).
So 2600 EU is short, 2500 EU is short, and anything bellow is short. 2500 and above could be short term longs until conference.
