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Hardy: QE questions yet to be answered

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Many traders are keeping their heads down ahead of a widely trailed QE announcement from the ECB. The devil will be in the detail, for example the share of risk and actual size of the package are yet to be confirmed. Saxo Bank's Head of FX Strategy John Hardy looks ahead to an important day for the Eurozone.

John analyses EURUSD levels to watch and also looks at the impact of the unexpected Bank of Canada move this week.     

Background:The European Central Bank is largely expected to announce the launch of a quantitative easing programme in an attempt to stimulate the Eurozone economy, which the International Monetary Fund recently projected would grow by 1.2 percent in 2015. This figure was reduced from earlier predictions made in October 2014 of 1.4 percent. Mario Draghi, President of the ECB, is expected to announce a QE programme in the region of EUR 1 trillion, but consensus amongst investors has also been around EUR 550 billion. Volatility in the market is likely to continue as investors await the EBC’s decision. 

EURUSD