Analysts at Nordea point out that given the active discussion around the reduced effectiveness of further ECB’s monetary policy easing, the risks are skewed towards no action.
Key quotes
“Since Lagarde left a lot of the important questions unanswered, pending the strategic review, markets didn’t care too much about the meeting.”
“EUR/USD was slightly up, but nothing out of the ordinary – and the pair remains fairly rangebound.”
“It will take renewed weak PMI figures for the ECB to deliver more easing. If we are right that more weakness is on the cards, we would expect the EUR to continue to trade on a weak footing versus the USD in Q1-2020.”
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