ECB Still Easing - RBS

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Łódź) - Paul Robson, Senior FX Strategist at RBS points out that the ECB's recent announcement of conditional LTRO for September has given it breathing space for now but that upcoming events could still overtake it.



Key quotes



"The obvious focus is CPI and Germany releases its June estimate this Friday ahead of EU numbers on Monday 30th."



"The ECB has often hid behind evidenceof continued economic recovery as a reason for not loosening policy more aggressively. But German data have been more mixed and this means Monday’s PMIs and Tuesday’s IFO data are important."



"A combination of lower inflation and softer growth would increase the chance the ECB
announces an asset purchase program in September."



"Given the risks around this week’s US core PCE deflator numbers (above) we are neutral EUR/USD looking for opportunities to sell if this week’s German data surprise to the downside."



You May Also Like

Related Forex Analysis
  1. Forex News

    EUR downside supported at 2014 low - FXStreet

  2. Forex News

    Caution Holding Euro, USD, and Yen Positions as Borrowing Costs Rise

  3. Forex News

    Fed has restored investor’s confidence - FXStreet

  4. Forex News

    EUR/USD downside fully exposed

  5. Forex News

    US dollar rally set to extend further - BTMU

Trading Center