FYI: Last Thursday, the ECB announced a new program of quantitative easing through commitments to buy asset backed securities (ABS) and covered bonds. The central bank also announced further rate cuts, which caught most of the market by surprise. These programs, in addition to the first round of rate cuts and expanded Long Term Refinancing Operations (LTROs) announced in June, are designed to get money flowing through the Eurozone economy faster and expand access to credit. The markets loved the measures as they were announced: European equities had a monster day, while the EUR declined by over 1.5% versus the USD.
Regards,
Ted
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