ECB guidance, long slated for the 14th June meeting, is now the key focus for EUR as four ECB speakers on Wed, notably Praet in a published speech, stated that ending their APP/QE will be discussed, notes Tim Riddell, Research Analyst at Westpac.
Key Quotes
“Monthly asset purchases of EUR30bn are set to continue until late Sep. Given the upbeat comments from these ECB members on convergence, confidence and resilience of inflation and the economy to their targets, markets will ponder whether APP will halt (hawkish), be tapered into end 2018 or extend beyond (dovish). This will be critical for EUR.”
“EUR/USD rebounds from 1.15 support to test the upper bounds of a perceived 1.121.19 range into ECB meeting.”
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