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[sludgehound]

An ECB QE may not push Euro lower

13:04 pm ET

Quotes from Capital Economics: - An ECB quantitative easing (QE) programme appears unlikely to be big enough to push the euro down sharply. But the prospect of continued stagnation in the economy and impending monetary tightening overseas should nonetheless see the single currency weaken further. - But much of course depends on the scale of the QE programme and the extent to which it has already been priced into the value of the euro. This might suggest that the euro will not fall any further on the commencement of QE and could even rise if the programme disappoints expectations.  - We forecast the currency to drift lower over the coming quarters, to around $1.15 by the end of 2016. But we expect this to reflect the continued weakness of the economy and persistent threat of deflation, rather than the impact of a decisive QE programme which will kick-start euro-zone's recovery.