FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, sees risk-associated assets benefited from the recent ECB measures.
"European and US equity markets closed higher yesterday in response to the series of monetary policy easing measures announced by the ECB although the response in Asia today is a little more mixed, with Japan flat and China and Hong Kong down on the day. Most of the rest of Asia is higher."
"The reaction of the markets, especially the modestly higher level of the euro, is testament to how high expectations were going into the ECB meeting yesterday. Please see our BTMU FX Weekly, released yesterday evening for a more detailed take on the ECB decisions."
"Our more brief take here is that the ECB did all it was expected to do but the excitement prompted by Draghi’s announcement of “intensive” work on introducing an ABS QE program that pushed the EUR/USD rate to the intra-day low of 1.3503 quickly reversed as it became nothing more than previous statements that a program could be introduced if inflation remains too low. President Draghi then admitted in Q&A that the ECB Council had not yet discussed the scope of the QE program."