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Will Draghi disappoint? - FXStreet

FXStreet (Bali) - Alberto Muñoz, Ph.D, Forex Analyst at FXstreet, shares his view on the upcoming ECB policy meeting this Thursday, noting that any hint by Draghi that they are preparing a QE programme to buy sovereign bonds will sink the Euro.

Key Quotes

"Next Thursday investors will pay attention to the size of ABS programme that will begin the next month. Median forecast shows that expectations are that ECB will purchase EUR250 billion in assets and EUR150 billion in covered bonds."

"If Draghi disappoints the markets, purchasing a lower amount of assets, then we could have a short term rally in EURUSD back to 1.2750 - 1.2800 resistance area. Anyway any comment from Draghi suggesting they're preparing a possible QE programme to buy sovereign bonds will sink the Euro, pushing EURUSD down to 1.2440."

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