Forex Flash: Euro likely to remain on defensive ahead of ECB – BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX analyst at the Bank of Tokyop Mitsubishi UFJ believes that the euro is likely to remain on the defensive this week ahead of Thursday's ECB monetary policy meeting where there is a non-negligible risk that it could decide to ease monetary policy further.
He writes, "ECB President Draghi revealed that potential rate cuts were discussed at their last meeting likely leaving them on the table at this week's meeting. However, the case for further rate cuts in the near-term has since been weakened by tentative evidence that the pace of economic contraction in the euro-zone is easing, and by the reduction in euro-zone government bond yields which is acting to more effectively ease overall monetary conditions."
He writes, "ECB President Draghi revealed that potential rate cuts were discussed at their last meeting likely leaving them on the table at this week's meeting. However, the case for further rate cuts in the near-term has since been weakened by tentative evidence that the pace of economic contraction in the euro-zone is easing, and by the reduction in euro-zone government bond yields which is acting to more effectively ease overall monetary conditions."
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