Comments from the ECB's Mersche

  • Would not need to make full use of PEPP if governing council determined that market tension had eased sufficiently
  • We are mindful that the size of our balance sheet can have implications for market functioning and price formation
  • PEPP must remain a temporary crisis instrument
  • The sheer size of the PEPP also goes beyond its primary backstop function by providing additional support to the monetary policy stance

Contrast these statements with Fed talk indicating no limits and no time horizon along with current better virus outcomes in Europe and there's a case to buy the euro. This is relatively hawkish stuff.