The European Central Bank (ECB) exceeded expectations (so rare in life) with their monthly 60 billion euro asset purchasing until Sept 2016 and an open ended loaded bazooka in their pocket.
It's going to be a giveaway by June. How can monetary policy replace needed fiscal policy which needs real structural reform? It can’t. We know that and the ECB knows that, so until there are legislative measures taken across Europe to integrate the tax systems and the interdependence, the ECB can only hope the image of QE and their "doing what it takes" send yields lower, penalizes banks for not lending AND sends the Euro to a place that the economy LOVES.
The Euro is at 11 plus year lows and counting. The charts tells me 1.08 is the level we hit in late May before a seasonal risk reduction actually sends the Euro into a risk covering rally.
The ECB is already seeing benefits form the lows currency and these will be highlighted in the 1Q. The German ZEW 2 days ago showed a nice bonce which started in late October as the currency dropped and the largest exporter in the world (on trade weighted basis) started drooling about the prospects for the cheaper pricing of their goods in Euro terms with foreign currencies.