FXstreet.com (Barcelona) - Despite no expected change of monetary policy tomorrow, the BBH Global Currency Strategy team suggests: “ECB meeting on Thursday takes on greater importance given intensifying stresses in the euro zone. With SNB easing monetary conditions, can the ECB continue to focus on inflation risks? While it may be too early for a shift, markets will be watching to see if Trichet portrays a hawkish stance with his coded language.”
“Meanwhile, Italy’s Berlusconi will speak before parliament today, while Spain’s Zapatero canceled his holiday in order to address problems in Spain. We remain skeptical that all this talk will yield much near-term in the way of policy responses. Since the EU summit was less than two weeks ago, we think it will take another big leg down in markets to get the next policy response from the EU.”
“Meanwhile, Italy’s Berlusconi will speak before parliament today, while Spain’s Zapatero canceled his holiday in order to address problems in Spain. We remain skeptical that all this talk will yield much near-term in the way of policy responses. Since the EU summit was less than two weeks ago, we think it will take another big leg down in markets to get the next policy response from the EU.”
