EUR: ECB 'sources' and QE taper 'leaks' to provide support - ING

In view of analysts at ING, the Austrian elections over the weekend should have a limited impact on the EUR.

Key Quotes

“Reality is that the currency will shift its focus to 26 Oct ECB meeting over the coming weeks and any talk from ECB speakers that errs on the more hawkish side should keep the currency bid. We feel the announcement of a 'lower for longer' QE taper schedule would drive Bund yields circa 10bps higher, with a one-time move up in EUR crosses. Eurozone data wise, we have the final release of Sep CPI and the German ZEW survey (both Tue), as well as balance of payments data (Fri).”