FXStreet (Mumbai) – Brian Daingerfield, FX Trading Strategist at RBS provides a sneak-peek in to the ECB Decision, stating that Greece may take precedent in the press conference.
Key Quotes:
“We think the ECB will leave policy rates comfortably on hold and leave many of its broad conclusions unchanged. Greece may take precedent in the press conference.”
“There is a possibility that the ECB takes action on the ELA, increasing liquidity for Greek institutions, though at least one Eurosystem source told MNI that the ECB may not increase the ELA allowance until a formal ESM program is signed and Greek banks are recapitalized.”
“President Draghi, in his press conference, will likely continue to stress the importance of completing their monetary policy measures and push back against any expectation that the ECB will be tapering its asset purchases early, in our view.“
“On growth, the ECB may repeat that while downside risks remain, risks surrounding the economic outlook have become more balanced.”
“A similar nonchalance may be taken toward asset price volatility as in June, when Mr. Draghi said the ECB is not prone to changing policy to address asset price volatility, famously adding that “we should get used to periods of higher volatility.”
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