The ECB has shifted from targeting the exchange rate to supporting the credit/bank lending channel.
The ECB's policy shift is sensible as negative rates do not appear to have fuelled bank lending, but it remains to be seen how successful the new measures will be.
The ECB's measures are positive for risky assets, particularly equity and credit markets.
The ECB's policy shift supports our long-held view that EUR/USD will head higher in 2016.
The menu of easing measures supports flatter curves in core euro FI.
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