FXStreet (Łódź) - FXStreet Analyst Jamie Coleman suggests that ECB chief Mario Draghi will focus on two main themes during tomorrow's post-decision press conference: ECB's need to assess the impact of last month's measures and the availability of additional policy tools.

Key quotes

"Draghi will stress that the programs announced in June have not yet been fully implemented. TLTROs won't even launch until September. ABS market rejuvenation is a long-term project and has barely begun."

"'We have additional tools.' He won't go into much detail, frankly because there is no there there. Draghi will bluff, however, saying the governing council stands united if additional easing measures are needed."

"There are outside risks that since the euro heads into the July meeting on firmer footing than it entered the June meeting, he could attempt to talk down the currency. I put the odds of that at about 1-in-3. Perhaps he will repeat that 'brutal' FX moves are unwelcome, as his predecessor Trichet did in 2004 and again in 2007."

"The risk for the ECB is that the market determines that it is truly out of bullets and pushes the euro even higher in an effort to provoke a policy response. Markets love to inflict pain, and that would be a very good way to do it."

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
COMPANIES IN THIS ARTICLE
Trading Center