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16 Mar 2015
Euro plummet too much? – Investec
FXStreet (Barcelona) - With EUR weakening sharply in the past few days, Jonathan Pryor, Head of FX dealing at Investec, comments that further Euro declines will be a little more gradual.
Key Quotes
“Although it’s not surprising the euro has weakened, it is surprising at how fast it has fallen; our economists note that early signs are the ECB may have front loaded purchases in its first week of QE causing over extended Euro pressure, so perhaps we can expect further Euro declines to be a little more gradual.”
“We aren’t alone in being surprised at the speed of the Euro decline, being joined on the weekend by Bank of Italy Governor and ECB member Visco, who stated ECB QE risks include "overshooting" as "it is beyond doubt that the strength of the exchange rate decline is larger than we had expected”."
Key Quotes
“Although it’s not surprising the euro has weakened, it is surprising at how fast it has fallen; our economists note that early signs are the ECB may have front loaded purchases in its first week of QE causing over extended Euro pressure, so perhaps we can expect further Euro declines to be a little more gradual.”
“We aren’t alone in being surprised at the speed of the Euro decline, being joined on the weekend by Bank of Italy Governor and ECB member Visco, who stated ECB QE risks include "overshooting" as "it is beyond doubt that the strength of the exchange rate decline is larger than we had expected”."