Although the Bank of Canada’s (BOC) moves push market players to stay cautious ahead of Thursday’s European Central Bank (ECB) monetary policy meeting, analysts at the Bank of America (BofA) pay a little importance to today’s key event.
The investment bank highlights €800 billion NextGenerationEU funding program and economic reopening as positive catalysts that might push the bloc’s central bank to act in June. However, the BofA also said, “We are concerned about a mini taper-tantrum into June given lack of clarity on policy reaction function.”
Concerning the market reaction, the bank mentions, “We see no EUR impact before more clarity on the Strategy Review, which can go either way.”
Read: EUR/USD rebounds from 1.2000 and turns positive for the day
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