ECB: Change of view – TDS
|Analysts at TD Securities suggest that in accordance with the global trend toward more cautious central bank hikes, they are revising down their expectations for ECB rate hikes, with a single 15bps hike to the depo rate in December.
Key Quotes
“We expect the ECB to then hike at a cautious pace, with 25bps hikes occurring every six months thereafter. We do not expect the ECB to introduce TLTROs should macroeconomic data recover as we expect.”
“FX: We are revising lower our EURUSD forecasts on the back of our downgraded ECB expectations. We retain a broadly constructive outlook for the pair, but we have reduced our year-end expectation to 1.24 from 1.27. Near-term risks to our view are still skewed to the downside, but we could see upside risks emerge on longer horizons.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.