The ECB hold its policy meeting later on Thursday. What can traders and investors expect from the meeting?
Here is their view, courtesy of eFXdata:
Nomura Research discusses its expectations for tomorrow’s ECB policy meeting.
“We don’t expect the ECB to make any monetary policy announcement at its September meeting. We expect the ECB to address the recent euro area negative inflation print and the euro’s appreciation,” Nomura notes.
“The ECB is unlikely to act on disappointing inflation yet, but we think that if the ECB decides to do so, the PEPP, rather than rates cuts, would be the preferred instrument. The benefits that a 10bp rate cut would bring to inflation at these levels are marginal, notwithstanding its beneficial impact on the euro,” Nomura adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.
Share
