ECB Preview: Focus on any guidance or hints on tapering - ANZ

The Research Team at ANZ presented a brief preview on the ECB monetary policy decision due for announcement today at 1245GMT, followed by ECB president Draghi’s presser at 1300GMT.

Key Quotes:

“EUR/USD vols imply an uncertain outcome to December's ECB meeting despite a baseline view that current QE will be extended by six months.”

“Whilst modest broad-based growth is in place and headline inflation is recovering, there is no evidence of a pickup in core inflation yet.”

“The focus for the market will also be on any adaptations to current QE rules and, critically, any guidance or hints on when tapering may start.”

“EUR/USD failed to break below 1.05 following the defeat of the Italian referendum. We view rallies as corrective and selling opportunities.”