5 Nov 2013
Flash: Euro remains under modest pre ECB pressure - BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that the euro remains under modest downward pressure ahead of this week’s ECB monetary policy meeting, reflecting the increased likelihood of further monetary easing in the near-term.
Key Quotes
“Italian Finance Minister Saccomanni has warned of the risks of a strengthening euro to the euro-zone’s fragile economic recovery urging the ECB to ease monetary policy to help small and medium-sized enterprises.
“Finance Minister Saccomanni called for “concrete” policy action at some point given that the ECB’s forward guidance “does not seem to be working as well as one had hoped”.”
“The Italian economy continues to underperform with real GDP having contracted modestly for the ninth consecutive quarter in Q3.”
“The Italian government expects a modest rebound in economic growth next year by 1.1% while he Bank of Italy expects an even more modest rebound of 0.7%.”
Key Quotes
“Italian Finance Minister Saccomanni has warned of the risks of a strengthening euro to the euro-zone’s fragile economic recovery urging the ECB to ease monetary policy to help small and medium-sized enterprises.
“Finance Minister Saccomanni called for “concrete” policy action at some point given that the ECB’s forward guidance “does not seem to be working as well as one had hoped”.”
“The Italian economy continues to underperform with real GDP having contracted modestly for the ninth consecutive quarter in Q3.”
“The Italian government expects a modest rebound in economic growth next year by 1.1% while he Bank of Italy expects an even more modest rebound of 0.7%.”