The ECB bought EUR 203bn and only sterilised EUR 194bn


The euro is down sharply after reports that the ECB didn’t fully sterilise bond purchases last week. The ECB bought EUR 203bn and only sterilised EUR 194bn. Thus, it has left EUR 9 bn sloshing about the European financial system. This is QE- extremely light – more like QE- zero than diet, but it is a form of QE nonetheless and as such the euro is getting hit. QE has the biggest potential downward impact on the euro especially vs. sterling and the dollar, as it means there are excess euro in

Comments are closed.