Flash: Bracing for some volatility - Rabobank

FXstreet.com (London) - A currency research team at Rabobank noted that the data published this week (German inflation numbers and EC Economic Sentiment Survey), have taken some pressure of the ECB to act in the December rate setting meeting, especially in the light of the decisions taken in November. Therefore, we don’t expect any action next Thursday.

Key Quotes:

“However, we would certainly expect Mr. Draghi to maintain a dovish stance so as to maintain maximum impact of the November measures. The new ECB staff projections will likely assist his case”.

“However, divisions as to whether they should be used at this juncture, which measures are to be preferred and in which order, could be significant. So expect Mr. Draghi’s comments to create some volatility in the market”.