EUR/USD: ECB policy meeting has been billed as “pivotal”  - Scotiabank

Analysts at Scotiabank explained the current environment for EUR/USD.

Key Quotes:

"Germany’s ZEW survey signaled a further slide in investor confidence this month, with the index slipping to a weaker than expected -16.1 (versus -8.2 in May)."

"Trade concerns alongside the recent Italian election have served to unsettle investors."

"We expect policymakers to look through recent political turmoil and the soft patch of Eurozone activity data to focus more intently on the upward nudge to price growth that has emerged recently."

"This week’s ECB policy meeting has been billed as “pivotal” for deciding on when to end asset purchases and we anticipate a positive EUR response to signaling that purchases will wind up late this year after a short taper."