Even before the ECB begins to employ quantitative ease, it is eying the exits. That will be music to the ears of the skeptics. ECB vice president Bini Smaghi is laying out the case for QE, saying it can take place even before policy rates reach their lowest levels. That comments, I guess, opens the door to the ECB to buy bonds or issue loans to banks without necessarily dropping their refinancing rate (as is widely expected.
EUR/USD nudged up as the comments hit the screans, reqaching 1.3098 before stalling. EUR/USD trades now at 1.3080.