Key events ahead – Westpac

By FXStreet FXStreet (Guatemala) – Sean Callow, analyst at Westpac noted the key events today.

Key Quotes:

“Asia’s data calendar is low key: final Korean Q3 GDP and the Nov China Caixin/Markit services PMI.

There is great potential for EUR volatility as the ECB announces its policy decision, followed by the press conference by President Draghi starting 45 minutes later. Draghi and selected colleagues have clearly signalled that there is sufficient risk of undershooting the ECB’s inflation target to warrant further loosening of monetary settings. No change in policy would cause such a surge in EZ yields and in the euro that even the hawks are likely to grudgingly agree to at least some action today. But there are many policy options on the menu so Draghi will have to fight hard to avoid underwhelming expectations.

A Reuters surveys of economists found most expecting an increase in the EUR60bn monthly asset purchases, with a median forecast of EUR75bn, while a deposit rate cut was widely expected. Recent ECB commentary makes clear that a deposit rate cut is the path of least resistance. Westpac looks for the deposit rate to be lowered from -0.2% to -0.3%, with risks of a deeper cut. Expanding the monthly total of …read more

Source:: FX Street