By Chris Becker
The major catalyst from last night’s action on macro markets was the change in language and intent of the German-dominated ECB, where it looks more likely that a QE program involving purchasing government debt is on the cards for early next year. However, this was taken as a spur to buy Euro and sell USD which saw the pair move up sharply through the 1.24 handle:
This is not yet high enough to arrest its daily decline, where resistance sits strongly at 1.26, but it brought the air out of European stocks with the FTSE down half a percent and the DAX hitting resistance again, down 1.5% on news that any stimulus will not be Japanese in manner – i.e buying stocks.
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