“Theoretically” he adds

  • Must let measures take effect before mulling new measures
  • Balance sheet expansion not a goal in itself nor fetish
  • ECB is able to do more if needed
  • ECB to begin ABS purchases this week
  • Says simple, transparent ABS have very low default rate
  • Monetary policy always aimed at price stability

Yves Mersch helps talk the euro lower through 1.2500 on ECB plans to buy everything including the kitchen sink. 1.2480 then 1.2460 the areas of support to watch