Dean Popplewell, Director of Currency Analysis at MarketPulse, notes that market continues to price in a probable easing by the ECB in its 22nd January meeting, backed by disappointing eurozone data. “The market continues to price in Euro QE. An overwhelming majority expects that the ECB will swing into action at its January 22, backed by ongoing disappointing data euro region wide.” “German, French, and UK industrial production numbers all failed to meet market expectations while dreaded inflation numbers supported the disinflation fears within region (Euro-CPI at its lowest level in six-years, -0.2% in December).” “For surety purposes, the market awaits for this Wednesday’s European Court of Justice pending decision on Outright Monetary Transactions (OMT) bond buying scheme. A negative assessment has the potential to lead the market to assume the flexibility and the scope of any ECB QE could be limited.” “With so many in the market already pricing in QE, price action could get very messy very quickly.”