6 May 2014
Expectations for ECB inaction prop up the EUR - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, expects the ECB to stay on the sidelines on Thursday.
Key Quotes
"The euro continues to remain on a solid footing in the near-term ahead of this week’s ECB policy meeting. While the ECB is not expected to ease monetary policy further this week, the release of the European Commission’s latest economic forecasts yesterday highlighted that it is facing building pressure from low inflation."
"The European Commission lowered their forecasts for inflation which is now expected to remain even more subdued at 0.8% in 2014 and 1.2% in 2015. In contrast, the latest ECB staff forecasts were set at 1.0% in 2014 and 1.3% in 2015. A further modest downgrade to the ECB staff forecasts at the June meeting bringing them into line with the European Commission’s new forecasts could prompt additional ECB monetary easing."
Key Quotes
"The euro continues to remain on a solid footing in the near-term ahead of this week’s ECB policy meeting. While the ECB is not expected to ease monetary policy further this week, the release of the European Commission’s latest economic forecasts yesterday highlighted that it is facing building pressure from low inflation."
"The European Commission lowered their forecasts for inflation which is now expected to remain even more subdued at 0.8% in 2014 and 1.2% in 2015. In contrast, the latest ECB staff forecasts were set at 1.0% in 2014 and 1.3% in 2015. A further modest downgrade to the ECB staff forecasts at the June meeting bringing them into line with the European Commission’s new forecasts could prompt additional ECB monetary easing."