ECB forecasts are out - BBH

By FXstreet.com | July 31, 2014 AAA

FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained that on the inflation front, yesterday's news from Germany and Spain warned of downside risks to the reading for the region as a whole.



Key Quotes



"Sure enough, the preliminary aggregate reading came in at 0.4, whereas the consensus had forecast an unchanged pace of 0.5%."



"The core rate was unchanged at 0.8%. This will be disappointing to the ECB where the staff had forecast a 0.7% rate for this year."



"Nevertheless, it most likely will not elicit a policy response at next week's meeting. The impact of the TLTROs, which will be launched in September, must be monitored first."



"In addition, the weakening of the euro is also helpful. It has declined 6 cents against the dollar since early May and is off about 3.2% on a trade weighted-basis since peaking in March."



comments powered by Disqus
Related Forex Analysis
  1. USD/JPY crashes below 106.50, more downside in store
    Forex News

    USD/JPY crashes below 106.50, more downside in store

  2. Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude
    Forex News

    Trading Video: Is the S&P 500 Rebound, VIX Retreat a Trend or Interlude

  3. EUR/USD bulls wake up and drive pair above 1.2800
    Forex News

    EUR/USD bulls wake up and drive pair above 1.2800

  4. Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?
    Forex News

    Strategy Video: Which is the Better Breakout Candidate - AUDUSD or EURJPY?

  5. AUD/USD Range Endures With Clearer Cues From Candlesticks Desired
    Forex News

    AUD/USD Range Endures With Clearer Cues From Candlesticks Desired

Trading Center