ECB Preview: Draghi’s presser in focus - Commerzbank

Analysts at Commerzbank express their thoughts on what they expect from the ECB monetary policy announcement due on the cards later today.

Key Quotes:

“Despite weeks and weeks of speculation in the market that the ECB might soon change its communication and hike the deposit rate at the end of the year, developments that caused the euro to take off and caused some ECB officials to make cautious comments, Draghi has not commented at all since the ECB meeting in December.“

“But ... we will hear his comments. The market will hang on his lips to find out whether the interest rate speculation is justified and what the ECB head's view on the euro appreciation over the past weeks is. We have been urging caution for some time in EUR- USD, as the market's view is exaggerated, and we see scope for a correction in the Euro.“