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BREAKING: QE to be 'front loaded' - EURUSD collapses

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May 19, 2015 bond buying, bond market, bonds, bonds and equties, bonds market, bonds update, bonds v equities, business, ecb, ecb meeting, ecb policy, ecb rate decision, ecb rates, eur, eur usd, eurgbp, eurjpy, euro, euro area, euro crisis, euro dollar, euro strength, euro zone, eurocrisis, eurodebt, eurodollar, europa, europe, europe growth, european, european banks, european central bank, european economy, european recovery, european union, eurozona, eurozone, eurozone crisis, eurozone economy, eurozone recovery, eurusd, for, foreign exchange, forex, forex idea, forex market, forex markets, forex trading, fx, fx markets, fx trading, saxo tv, tradingfloor.com
French European Central Bank Governing Council member Benoit Coeure, has said the bank should frontload asset purchases in May and June due to low liquidity during the summer months of July and August. The announcement, between meetings, triggered a collapse in EURUSD https://www.tradingfloor.com/forex/eurusd.

Saxo Bank's Head of FX John Hardy gives us his reaction and key levels to look out for. 
 
"ECB's Coeure said QE had to be front-loaded ahead of the "summer lull". Clearly, the recent back up in the Euro exchange rate and the spike in European bond yields has made quite an impression on the ECB, which is out with a very strong inter-meeting signal that it disapproves of where the market is at the moment. EURUSD is responding strongly and has collapsed through key local support at 1.1250 in a vicious sell-off on the news. The next support zone comes in at 1.1133 and then the 1.1050/00 zone. "