Back
2 Jul 2014
Market expectations on further ECB action limited - FXStreet
FXStreet (Bali) - Ahead of Thursday's ECB meeting, Valeria Bednarik, Chief Analyst at FXStreet, notes that market expectations are limited.
Key Quotes
"Market expectations for upcoming ECB meeting are limited after the Central Bank cut its benchmark rate to record lows and introduced negative deposits rates. Attention will focus then on what Draghi has to say on the QE matter. If he continues to suggest the ECB will apply the unconventional measure to boost growth, the EUR may react to the downside, as market players will focus on the widening imbalance between economic policies compared to other countries. A dovish tone, or a downgrade in the outlook, will also weight in the common currency."
Key Quotes
"Market expectations for upcoming ECB meeting are limited after the Central Bank cut its benchmark rate to record lows and introduced negative deposits rates. Attention will focus then on what Draghi has to say on the QE matter. If he continues to suggest the ECB will apply the unconventional measure to boost growth, the EUR may react to the downside, as market players will focus on the widening imbalance between economic policies compared to other countries. A dovish tone, or a downgrade in the outlook, will also weight in the common currency."