UBS tells clients it sees the ECB cutting the refi rate 50 bp to 1.00% and adopt quantitative ease via the commercial paper market at a future meeting. 1.00% is not the floor for ECB rates, the bank says. Once those actions have been taken, EUR/USD will lose its status as the stalwart hold-out regarding “printing money” and EUR/US will slide to 1.2300, they think, by June.
EUR/USD is easing as the report lands in in-boxes around the world.
