Show less
Technical analysis – A view of the market: Larsson
Kim Cramer Larsson
Wednesday at 7:47 GMT
The week ahead in macro — #SaxoStrats
Kay Van-Petersen
Monday at 8:53 GMT
The week ahead in macro — #SaxoStrats
Kay Van-Petersen
07 May 2018 at 8:05 GMT
Video / 14 April 2014 at 10:10 GMT

To QE or not to QE?

Angus Walker

The market has been largely unresponsive to the ECB’s threat of quantitative easing as the Euro continues to climb.

After a week of robust growth for the currency, ECB president, Mario Draghi commented on Saturday that "a further strengthening of the exchange rate would require further stimulus." Draghi has warned investors of the possibility of quantitative easing for months now, yet the ECB’s comments have remained unconvincing, until now. The directness of Draghi’s remarks over the weekend does appear to have some some investors accepting the ECB’s claim.

As Draghi continues to talk down the euro through quantitative easing, awareness amongst economists that deflationary practices will ensue is growing. According to a Bloomberg survey, sentiment amongst economists is that deflationary practices might occur within the next two months.

The euro-area economy is predicted to grow by 1.2 percent in 2014, according to the International Monetary Fund. By waiting until June to make a decision about economic stimulus the ECB will be able to assess the rate growth and inflation. Whether the ECB will use quantitative easing or another methodology remains unclear, despite all the hints.

The ECB has been testing multiple scenarios and has not yet exhausted more conservative policy measures. Dermot O’Leary, Chief economist at Goodbody Stockers commented on the ECB’s future actions saying, “One of the major reasons for the confusion, it seems to me, is that the ECB hasn’t finished their homework in terms of the impact of the various policy measures.”


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail