The analysts at TD Securities (TDS) express their thoughts on the next European Central Bank President announcement after a German official said that it could be delayed until September.
“Announcement on the next ECB President could be delayed until September according to an unnamed German official — Rehn would be an easy "neutral" appointment to make (as he's not French or German) if negotiations for the big political jobs remain seized up.
As for markets, we think that any initial move in EUR would be based on a simple, knee-jerk Weidmann (up) or not-Weidmann (down) reaction.
We would note that of the leading candidates, it seems that Rehn is the most dovish of the bunch, as he's the only one who has repeated Draghi's sentiment from the Sintra conference, that "In the absence of improvement... additional stimulus will be required." So he should be seen as more of a continuity candidate, carrying on Draghi's dovish and activist stance.”
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