ECB QE likely to generate EUR negative flows

BofA Merrill Lynch notes in a report on Monday:

• Markets have gone a long way to price in ECB QE, but the start of the ECB's actual bond purchases is likely to generate EUR negative flows. 
  
  
• In our view, a high share of bonds that the ECB will be buying will come from holdings by foreign investors. We think this could lead to as much as 10bn worth of EUR selling against other currencies every month.