We got what we were looking for from the ECB and have covered a large portion of our short now that 1.30 failed to break meaningfully. While the details of the ABS purchase program are still to be hashed out, the headline earlier that mentioned 500bn is substantial. To put that number into context, the total EU securitization market is 880bn and total issuance of ABS in ’12/’13 was only 430. The ECB has clearly shifted to a more proactive approach and it’s quite clear that the EUR will be the world’s funding currency for a significant period of time. Resistance now comes in at 1.3070.
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