BLBG: Euro May Gain to $1.40 on ECB Bond Buying, BNP Paribas Says
Ian Stannard, a senior currency strategist at BNP Paribas SA in London, comments on the European Central Bank’s decision to buy 60 billion euros ($80 billion) of covered bonds. He spoke in a telephone interview.
“The euro has suffered up until now because the market has perceived the ECB to be behind the curve. Now they are starting to catch up.
‘‘The fact that the ECB is taking more unconventional steps should be seen as a positive for the euro. The market wasn’t expecting them to make this move.
‘‘The more favorable environment on the financial markets will be maintained and that’s good for the euro. Risk appetite will remain healthy.
‘‘We’ll see a move back toward the $1.3745 level and ultimately toward $1.40 as we head into the summer.
‘‘It’s a smaller measure than the measures of other central banks but it’s an important step. It may not be the last step.’’
