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Fasdal: Will the ECB call the Fed’s bluff?

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Saxo Bank’s Simon Fasdal believes that the real reason the US Fed did not hike rates was to avoid a further strengthening of the dollar. And this leaves the European Central Bank with no other options than to respond.

Fasdal says it seems like the ECB knew the US Fed could decide to hold off on hiking rates, when it announced its readiness for further quantitative easing to boost the lagging Eurozone economy.

With the Fed’s decision to leave rates unchanged, the ECB is likely to act sooner rather than later and that could bode well for investors in European equities and fixed income.