On the ECB front, George Saravelos, Research Analyst at Deutsche Bank, thought that the central bank still had more ammunition to weaken the euro.
Key Quotes
“Noting that constraints on the BoJ’s negative rates policy (a flat yield curve and high share of fixed income assets owned by banks) did not exist in the Euro Area. He saw the upcoming March meeting as crucial for the sub-parity EUR/USD call. Reserve rebalancing dynamics also remain bearish for the Single Currency according to Saravelos, who estimated that reserve managers could rebalance out of nearly EUR 200bn euros over 2016.”
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