The €1 Trillion ECB Splurge

The ECB is also going to have to adjust lower its forecast for inflation in 2015, which currently sits at an unrealistic 0.7% and expectations are for an increase to the current growth forecast of 1%.  These forecasts could also influence how EURUSD trades later today as a downward adjustment to inflation and no corresponding uplift in the growth forecast could lead to more downward pressure on the euro.  Either way the euro's downward trend looks to be intact and weakness for EURUSD continues this morning with the rate trading at 1.1045 at the time of writing.  Despite the usual spike in Eurozone bond yields one would expect ahead of the commencement of QE, yields are likely to remain at their historical lows, but with signs on the economic data front that indicate the worst is over for Europe, one can't help feel this is all coming a little late.

You can also follow FxPro's news on our insights blog or follow us on Facebook and Twitter.

blog.fxpro.co.uk

http://www.fxpro.co.uk

Legal: The information in this article is not directed at residents of the United States, or targeted at the general public of any particular country. It is not intended for distribution to, or use by, residents in any country where such distribution or use would contravene any local law, or regulatory requirement.  This marketing material should not be construed as a personal recommendation or as investment advice.

Risk Warning: Transactions in Contracts for Difference and Foreign Currency are leveraged products that can result in the loss of all your invested capital. These products may not be suitable for everyone. Please seek advice if you do not fully understand the risks. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risk involved and take into account your level of knowledge and experience. Seek independent advice if necessary.