Having spiked briefly on the back of dollar weakness following a piss-poor payrolls print, EURUSD is tumbling back to unchanged on the day after Bloomberg reports that European Central Bank policy makers may not be ready to finalize their decision on next year’s bond-purchase program until December, according to euro-area officials familiar with the matter.
As Bloomberg reports, the Governing Council has no appetite to rush into decision at Sept. 7 meeting, and complexity of the topic means full details of the plan may not be settled at Oct. 26 meeting, people say. Policy makers don’t want to surprise markets, two of the people say, in a sign that broader signals, lacking full detail, could be given at Sept. and/or Oct. meetings.
Euro’s rise after President Mario Draghi’s comment in June on “reflationary forces” and currency’s jump again last week when he opted not to try to talk it down in a speech in Jackson Hole, Wyoming, shows how sensitive markets are.
Policy makers want extreme prudence, with changes to communication and policy likely to move even slower than originally expected, two of the people say
The dovish jawboning for the second day in a row sent EURUSD back down after the payrolls pump…
It appears a new policy is emerging as currency wars reappear…
Yesterday it was leaked reports or concerns about “strong currency” and today it is delaying a decision that many expected to titl towards tapering QE.
via http://ift.tt/2iNIBxj Tyler Durden