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EUR/USD recovery seems capped given QE impact

  • ECB buys EUR 9.8 billion of assets during first 3 days of QE plan

  • EUR/USD 1.0906-1.0494 in that period

  • EUR 50.2 bln still to buy in March

  • Massive headwinds for EUR even with speculators so short

  • 10 year US/Bund spreads narrows just 4 bp from trend wide, 2's at trend wide

  • Good cause seen to sell into EUR/USD strength 

 

  • Market Data
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