A quick trip up to 1.0874 on the QE cut and back down once the details were digested
Here's the key part of the statement again;
"Regarding non-standard monetary policy measures, the Governing Council decided to continue its purchases under the asset purchase programme (APP) at the current monthly pace of €80 billion until the end of March 2017. From April 2017, the net asset purchases are intended to continue at a monthly pace of €60 billion until the end of December 2017, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim."
That's pretty much what my view was though I'm a little surprised they didn't go longer on the timeline. The algo's have read the €60bn as a taper and thus the pop in the Euro.
"If, in the meantime, the outlook becomes less favourable or if financial conditions become inconsistent with further progress towards a sustained adjustment of the path of inflation, the Governing Council intends to increase the programme in terms of size and/or duration."
There's the insurance against any downturns and leaves the door well open to further (or back to levels) easing, should they need it.
At the moment it doesn't look like euro is reading anything too dovish into this but there's going to be a lot if indecision until Draghi steps up to explain it all in 30 minutes.
