Societe Generale: ECB QE approaches lift off. Euro still falls

Quotes from Societe Generale

• Today's ECB meeting in Cyprus should be accompanied by a few more details about the bond-buying programme, but few fireworks. 
  
  
• Re-affirmation of the commitment to buy EUR 60bn per month, some clarity on the logistics will be important to the bond market, which has gone a long way since the original announcement. Any sign of discord would be noteworthy too. 
  
  
• But while the risk of a further correction in Bunds is obvious, the FX market seems pretty single-minded where it comes to the Euro. The only way is (or has been, until now) down.
• Our technical analysts see the next support at 1.08 in EUR/USD and the lack of any kind of meaningful bounce at any stage this year probably means there are now people selling into weakness.
• Overshoot on the downside is likely if tomorrow's US payroll data are strong. All of this at a time when the European economic data show signs of improvement, albeit modest.
• You could hardly invent a better backdrop for equity markets, even if that is counter-balanced by the continued correction to risk assets globally. 
  
  
• For now, the Euro goes on falling, both against the dollar and against higher-beta European currencies.