29 Jul 2013
Flash: ECB unlikely to foster changes this week – Investica
FXstreet.com (New York) - The EUR is trading near the top of its likely short-term trading ranges against the dollar, having already recovered from lows near 1.2750 to above 1.3250, notes the Research Team at Investica LTD.
Key quotes
“The ECB looks unlikely to make any changes to interest rates at this week’s policy meeting. There is, however, a small chance of action to expand monetary policy and there is no prospect of any tightening.”
“The ECB is also likely to maintain dovish forward guidance with further hints over the possibility of negative deposit rates which will limit Euro support with modest losses the most likely outcome.”
“The latest US Federal Reserve meeting will be an extremely important focus on Wednesday. The most likely outcome is that policy will be left on hold and there will be no major deviation from June’s statement. In essence, the Fed will repeat that it expects to start bond tapering this year if the economy performs as expected.”
Key quotes
“The ECB looks unlikely to make any changes to interest rates at this week’s policy meeting. There is, however, a small chance of action to expand monetary policy and there is no prospect of any tightening.”
“The ECB is also likely to maintain dovish forward guidance with further hints over the possibility of negative deposit rates which will limit Euro support with modest losses the most likely outcome.”
“The latest US Federal Reserve meeting will be an extremely important focus on Wednesday. The most likely outcome is that policy will be left on hold and there will be no major deviation from June’s statement. In essence, the Fed will repeat that it expects to start bond tapering this year if the economy performs as expected.”