TD taking a view out to the September European Central Bank meeting, this in brief from a longer note:
- downside risks to the Eurozone continuing to materialise
- ECB will continue to debate and study how much further easing, and which type, is needed ahead of its meeting
- markets are well-priced for a small depo rate cut, they're less certain about QE
- any signals that odds of QE are rising could put further downward pressure on the EUR
(bolding mine)