ECB expected to deliver a dovish statement – Danske Bank

By FXStreet FXStreet (Edinburgh) – Pernille Henneberg, Senior Analyst at Danske Bank, believes the ECB meeting could lean towards the dovish side on Thursday.

Key Quotes

“Overall we expect the ECB to sound dovish and slightly worried at its upcoming meeting on 3 September”.

“The lower oil price together with the stronger effective EUR are challenging the ECB’s outlook for a sustained adjustment in inflation and, looking at the 5Y5Y inflation-linked swap rate, inflation expectations do not seem well anchored”.

“Currently, we see a low probability of the ECB delivering imminent easing and we believe the ECB will first attempt to improve the inflation outlook by verbal intervention”.
For more information, read our latest forex news. …read more

Source:: FX Street