29 Jul 2013
Flash: Eye’s on the ECB - BTMU
FXstreet.com (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyp-Mitsubishi UFJ suggested that the main event in the euro-zone in the week ahead will be the latest ECB policy meeting on Thursday.
Key Quotes:
“Since their last meeting on the 4th July, the leading PMI surveys have likely reinforced the ECB’s confidence that a return to growth in the euro-zone is likely in the 2H 2013 although they will have been concerned by the weaker than expected money supply growth in June”.
“We expect the ECB to maintain an unchanged monetary policy stance reiterating that it will maintain present rates or lower for an extended period”.
“Still, the clear easing bias means that a rate cut can’t be completely ruled out. The euro may derive some support in the near-term if President Draghi indicates that the probability of lower rates has eased”.
Key Quotes:
“Since their last meeting on the 4th July, the leading PMI surveys have likely reinforced the ECB’s confidence that a return to growth in the euro-zone is likely in the 2H 2013 although they will have been concerned by the weaker than expected money supply growth in June”.
“We expect the ECB to maintain an unchanged monetary policy stance reiterating that it will maintain present rates or lower for an extended period”.
“Still, the clear easing bias means that a rate cut can’t be completely ruled out. The euro may derive some support in the near-term if President Draghi indicates that the probability of lower rates has eased”.