Greece in focus in today’s ECB meet – RBS

FXStreet (Barcelona) - With ECB set to announce the details of its purchase program today, Greg Gibbs, FX Trading Strategist at RBS, notes that Draghi might also be quizzed regarding the conditions for providing term liquidity to Greece.

Key Quotes

“Tonight, the ECB is set to announce finer details of its QE plan to purchase EUR60bn per month until Sep-2016, with the intention to continue it until there is a sustainable adjustment in the path of inflation towards the 2% target.”

“It will release updated economic forecasts which will help set expectations on how long the QE program may last. However, it is unlikely that the market will be forward-looking enough to see the end of this QE program for some time.”

“Continuing in the background are the debt financing negotiations with Greece. Draghi will be quizzed in the press conference on how and under what conditions the ECB will continue to provide term liquidity to Greece.”

“Greece faces maturing loans to the IMF and refinancing Treasury bills in coming weeks. There are some questions over whether it has the reserves to get past this month.”

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