Here's why the comments from the ECB's Rehn last week were so significant

Author: Eamonn Sheridan | Category: Central Banks

ICYMI last week's comments from Rehn, here:

Bank of Finland governor and therefore also a member of the ECB's rate-setting committee, Olli Rehn was writing in the WSJ.

 
Snippet via UBS, the bank thinks Rehn's words were significant:
  • rightly seen as euro negative, in the sense that he expresses a very clear view that the September package will need to be a big one
Rehnd
  • specifically argues for 'substantial' bond purchases 
  • and that it was important to beat market expectations
Their view is that:
  • EUR will repeatedly get pushed lower ahead of 12 September
  • only after that would the euro have any chance to move substantially higher, possibly once Draghi's departure coincides with the launch of meaningful German fiscal stimulus
----
While unrelated to Rehn I bolded that German stimulus bit ….. don't dismiss the likelihood of this folks.
ForexLive
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose