EUR: Can the ECB curb the market’s QE taper enthusiasm? - ING

Despite a slightly higher than expected headline EZ CPI release, the bullish EUR momentum took a bit of a setback yesterday as headlines stating that some ECB members are becoming concerned over the strength of the currency crossed the newswires, explains Viraj Patel, Research Analyst at ING.

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“We doubt if anyone was genuinely surprised by this; the pace of the EUR rally since July will surely be a factor for the Governing Council at the ECB meeting next week, although we are wary of the central bank’s ability to credibly talk down the currency. Speeches by the ECB’s Nowotny and Constancio today may not offer a sneak peek given the “quiet period” ahead of the Sep meeting.”