EUR/USD: Dec ECB: A Knee-jerk Response To ECB’s Strong New Staff Projections – SEB

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ECB President Mario Draghi caused a wobble around the euro in the final meeting for the year. What’s next? Here is the view from SEB:

Here is their view, courtesy of eFXnews:

SEB Research discusses the reaction to the ECB December meeting, and notes a knee jerk reaction in EUR/USD after spiking initially in response to the higher staff projections before dropping back towards pre-meeting levels and continued slightly lower after.

“As we expected, the ECB Governing Council, in today’s final 2017 meeting, left all policy tools – rates, asset purchases and, importantly, also forward guidance – unchanged. ECB staff projections were strongly revised up for GDP growth and, to a lesser extent, for inflation.

Contrary to our expectation, the central bank gave no further details regarding the future composition of asset purchases after the € 30bn reduction in January 2018. The ECB re-iterated its call for Eurozone governments to step up the pace for structural reforms and increase efforts to strengthen the institutional architecture of European Monetary Union.

In the press conference, Mario Draghi once again managed to express increased confidence and at the same time dispel the notion that the ECB was in under any pressure to withdraw stimulus more swiftly than previously anticipated,” SEB notes.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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