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ECB: QE rhetoric is the ‘clincher’ this month - BMO

FXStreet (Guatemala) - In respect of the ECB, Stephen Gallo, European Head of FX Strategy at BMO Financial Group suggested that words of attrition are coming, but disappointment risks are high and rising.

Key Quotes:

"This ECB presser is largely a remake of the one in August: words, not actions, are the primary weapon for now".

"As CPI rates stabilise, the case for stronger verbal rhetoric this month is actually higher, so we expect more".

"An ABS programme launch in due course is a foregone conclusion so ‘QE’ rhetoric is the ‘clincher’ this month".

"Draghi could provide more details on why he thinks ECB & Fed policies are likely to diverge from one another".

"Draghi cited CFTC data in August: if he wants to keep the market short EURs he needs to boost rhetoric".

"EUR/USD is currently a better buy in the 1.2950-1.3000 range, and a sell between 1.3250 and 1.3325".

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