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11 Dec 2015
Markets exaggerated and ECB stayed silent - Westpac
FXStreet (Guatemala) - Sean Callow, analyst at Westpac Banking Corporation explained that the EUR/USD fell from 1.1000 to 1.0940, which just brought it back to where it was on Wednesday Sydney.
Key Quotes:
"ECB chief economist Praet told Handelsblatt that part of the reason for market disappointment over last week’s decision was that during the media blackout period, “the markets exaggerated the situation again. But we could not respond to it because we are obliged to remain silent.”
Similarly, ECB’s Mersch said market speculation over aggressive easing was not justified by official commentary. He specifically criticized the Reuters source story claiming a two-tiered deposit rate was under consideration, saying it “never had a chance of being adopted.”"
Key Quotes:
"ECB chief economist Praet told Handelsblatt that part of the reason for market disappointment over last week’s decision was that during the media blackout period, “the markets exaggerated the situation again. But we could not respond to it because we are obliged to remain silent.”
Similarly, ECB’s Mersch said market speculation over aggressive easing was not justified by official commentary. He specifically criticized the Reuters source story claiming a two-tiered deposit rate was under consideration, saying it “never had a chance of being adopted.”"