Expect a dovish ECB – ANZ

By FXStreet FXStreet (Guatemala) – Analysts at ANZ explained that going into this week’s meeting, we know that the ECB has an easing bias and that the ECB sees the risks to growth and inflation as lying to the downside.

Key Quotes:

“August data from Germany on factory orders, industrial production and exports were disappointing. Against that backdrop, a monetary easing cannot be completely ruled out but the recent indications from policy setters is that they may prefer to wait how financial, commodity and emerging market developments evolve before committing to a new round of QE.”

“Given how low inflation is (HICP -0.1% y/y in September), the tone of the meeting should be dovish. Based on policy preferences, inflation and a still substantial output gap, the euro side of the equation argues that the euro should be weaker.”
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Source:: FX Street