On the face of it the euro might bounce on this if it deems the amount to low. Further headlines coming out.
- ECB said not to have taken any decision on QE
- Staff study said to focus on investment grade government bonds
- May consider monthly or total target sizes
- Study sidestepped Greek debt treatment
- Study was shown to ECB governors Jan 7th
Bloomberg reporting ECB sources
It still all looks like work in progress and the governors were asked not to reveal their opinions on the study. It looks like there’s still to be plenty of deliberation to be had before the ECB meeting on the 22nd. We know the ECB would like to get their balance sheet up around €1tn but €500bn isn’t that big a number when you spread it around the whole of the Eurozone.
at the moment the euro is taking it all in it’s stride at 1.1845 after an initial drop to 1.1798 from 1.1820
