ECB looking to Q1 2015 before deciding on QE says Constancio via ForexLive

• Can gauge in Q1 if pace of balance sheet expansion is on track to return to early 2012 size
• If not we will have to consider buying other assets including sov bonds in secondary market
• Sov QE would be a pure monetary policy decision
• Inflation threatens to continue on the low side while low growth environment creates risks for fabric of euro area
• Buying sov bonds would influence inflation expectations and exchange rate
• Current stimulus is expected to to achieve ECB asset goal
• It is not the job of ECB to pressure governments

EUR/USD chalks up another ECB man priming QE. It comes with the same old ‘wait for the data/current stimulus results' but there's no doubt they're ready to pull the trigger. It heightens the prospect of getting the full details at next week's ECB meeting

posted via ForexLive