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22 Jan 2015
Draghi the harmoniser - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank explained, as a first impression, they would argue that Draghi has managed to retain the harmony in the Council by finding the right balance between the program’s size, its conditions and risk sharing features.
Clearly, the potential size of the program will be seen by market participants as convincing. It is therefore no surprise that equity markets reacted positively, sovereign spreads tightened (10Y Portuguese yields fell 19bp) and the euro declined to within a whisker of the 1.14 handle."
"German 10-year yields, however, also fell (down some 14bp during the press conference). Of note, also, is the positive reaction in emerging markets, indicating that the ECB is seen as taking over from the Fed as being one of the global liquidity providers."
Clearly, the potential size of the program will be seen by market participants as convincing. It is therefore no surprise that equity markets reacted positively, sovereign spreads tightened (10Y Portuguese yields fell 19bp) and the euro declined to within a whisker of the 1.14 handle."
"German 10-year yields, however, also fell (down some 14bp during the press conference). Of note, also, is the positive reaction in emerging markets, indicating that the ECB is seen as taking over from the Fed as being one of the global liquidity providers."