It could well be that some people will be disappointed by the ECB meeting – Commerzbank
|Today, the European Central Bank (ECB) is set to announce its latest policy decision. But we are unlikely to hear much more than what many ECB members told us back in February, Antje Praefcke, FX Analyst at Commerzbank, says.
A bit of disappointment is possible
President Christine Lagarde's reference to a further decline in inflation combined with the weakness of the economy could cause some to increase their skepticism about the Euro, although the likelihood of the ECB cutting before June is not high.
Reliable data on wage trends will not be available until the end of May, and the ECB will probably want to wait for the data before taking action. At the meeting in April and in the weeks after that, it can still prepare the market sufficiently for a possible interest rate cut in June, which is already priced in anyway.
Unless something unexpected comes from the ECB today, I see at most a moderate reaction of the Euro to statements that more or less clearly bring a first rate cut into play.
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.