FXStreet (Barcelona) – Previewing the ECB meeting today, the TD Securities Team note that any surprises from the central bank is unlikely but markets will have a keen ear for Draghi’s answers.
Key Quotes
“The focus today will be on the ECB meeting, where the opening statement is unlikely to contain any surprises, so market attention will fall on Draghi’s answers regarding liquidity to Greece, his concern and interpretation over the back-up in rates, and whether he suggests there was any reason other than market liquidity which led the ECB to frontload QE before the summer.”
“We expect Draghi to suggest the move in market rates vindicates the impact QE is having on stabilizing long-term expectations and why the ECB remains committed to fully implementing the programme.”
“We also do not think Draghi will suggest any ulterior motives to front-loading.”
“Lastly, the ECB will have scope to increase their near-term macro forecasts, adding 0.2pp to 2015 GDP and inflation forecasts but is more likely to leave 2016/17 unchanged.”
(Market News Provided by FXstreet)