Citi analysts noted on ECB.................>

ECB VIEW: Citi analysts noted on ECB Draghi/Jackson Hole that Draghi "used his

last (2014) JH appearance to signal 2015 QE by focusing on falling inflation

expectations. Market news services suggest he will not talk about monetary

policy. But he may have to announce an extension (and tapered) QE as early as

the 7 September ECB meeting."

- They add that "any preview of this at JH, in the context of better EA

(European Area) data but without mentioning FX, could see the EUR hit 1.20. But

if he focuses on EUR appreciation without discussing removing accommodation,

long EUR positions in the market could be set back. We are still long EUR with a

1.1420 stop and would otherwise buy dips."