FXstreet.com (Barcelona) - Despite UBS economists expect the ECB to hold the fire on Thursday, FX strategist at the bank Mr. Geoffrey Yu suspects that "additional instruments and changes in open-market operations' guidance and further adjustments to collateral standards may be on the agenda" he says.
As read in Mr. Geoffrey FX report: "Draghi's post-decision statement will be equally important as now the ECB may be expected to play their own part after moves for crisis resolution. The ECB may want to avoid setting policy on a quid pro quo basis with the political establishment. Nonetheless, with activity showing signs of contraction in Europe, the case for outright stimulus is somewhat stronger and current market pricing has reflected such expectations"
As read in Mr. Geoffrey FX report: "Draghi's post-decision statement will be equally important as now the ECB may be expected to play their own part after moves for crisis resolution. The ECB may want to avoid setting policy on a quid pro quo basis with the political establishment. Nonetheless, with activity showing signs of contraction in Europe, the case for outright stimulus is somewhat stronger and current market pricing has reflected such expectations"
