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The European Central Bank is not set to make any changes to policy, but  Draghi’s tone certainly matters.

Here is their view, courtesy of eFXnews:

Having already mapped its monetary policy course for full 2017 at its last meeting in 2016 (8 Dec),  the ECB is most unlikely to deliver any further policy adjustments  at the upcoming, first Governing Council meeting in the new year on 19 January.

Markets will therefore focus on the ECB press conference, in which Mario Draghi will deliver an update on economic and monetary developments in the euro area over the past six weeks.

In order to avoid any diminution in the current amount of monetary accommodation,  we expect the ECB to strike a dovish balance and dispel any taper speculation.

Given the minimal bond and FX market moves since the previous ECB meetings, we expect the outcome of this  week’s ECB meeting to be broadly market-neutral.’

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