Forex Flash: ECB to hold rates; recovery in all things EUR to be contained - NAB
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EUR/USD
FXstreet.com (Barcelona) - The recent EURUSD slide ahead of the ECB meeting, "owes something to more poor German data, this time industrial production which recovered by a mere 0.2% after the (upward revised) 2.0% October drop" comments NAB.
Despite the November data in Germany, NAB thinks the ECB will hold rates, and they are looking for President Draghi "to push back against the notion of a rate cut when he delivers the press conference" the bank notes.
"But a cut isn't ruled out, and the threat of lower rates in the face of evident weakness in the Eurozone core is something that may serve to keep any near term recovery in all things EUR contained" NAB adds.
Despite the November data in Germany, NAB thinks the ECB will hold rates, and they are looking for President Draghi "to push back against the notion of a rate cut when he delivers the press conference" the bank notes.
"But a cut isn't ruled out, and the threat of lower rates in the face of evident weakness in the Eurozone core is something that may serve to keep any near term recovery in all things EUR contained" NAB adds.
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