If QE is on the cards then ECB needs to go big on purchases – FXStreet

FXStreet (Barcelona) - According to FXStreet Analyst, Craig Drake, the ECB will have to unleash a big sovereign asset purchase programme tomorrow to counter the action that has already been priced in, if it decides to implement QE.

Key Quotes

“If it does unleash sovereign asset purchases on Thursday, the ECB needs to go big. The ECB would need to provide a large enough monetary shock to overcome an action that has already been heavily priced in. But with this pricing in of action, the downside risks and potential for a big short squeeze in the event of anything less than EUR500bn of action means that traders need to extremely cautious around the ECB announcement.