Quotes from RBC Capital Markets:
-EUR: It is shaping up to be a week to forget for EUR as speculation of an ECB refi rate cut next week has mushroomed. We expect the ECB to leave all of its policy settings unchanged next week, but for the opening statement (and Q&A) to have a distinctly dovish tone given the combination of recent euro exchange rate strength and data weakness (inflation, credit, and labour market).
-For now, we think that the Governing Council will refrain from any immediate action, but we expect the downbeat tone of next week’s meeting to lay the groundwork for a policy response over the next few months, which, at the very least, will take the form of another (V) LTRO early in the new year.
Published: 2013-11-01 05:05:00 UTC+00
Research: Eur Review
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