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Forex pairs in this Article » EUR/USD, GBP/USD (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale comments that the ECB expects weak GDP growth and below target inflation.

Key Quotes

“And yet, Mario Draghi said nothing at yesterday’s press conference to encourage hopes of further easing. The impression he left was that things have to get worse (return to recession or deflation) before the ECB acts further.”

“There is nothing here to make me optimistic about growth, or to make me think the Euro is going anywhere very quickly. Pouring some cold water on (our) hopes of a further LTRO in Q1 has triggered a sell-off in peripheral bonds, but I still prefer front end Europe (no growth, no inflation) to the long end of the US.”

“And I still think EUR/USD will meander towards 1.20 on a 3-5yr view, though I concede that doesn’t lead to any trade ideas. Stay long GBP/CHF, despite a rough day yesterday.”
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