Forex Flash: ECB would stay in the sidelines next week – Danske Bank (Barcelona) - The ECB would hold its monetary policy gathering next week, and according to S.Bocian and A. von Mehren, editors at Danske Bank, the LTRO repayment programme and the recent steep upside in the euro would be in the limelight, while a rate cut chance is close to zero.

“The ECB meeting on Thursday should give some insight into how the ECB sees the early prepayment of LTRO money. Is it a sign of normalisation or a premature de facto monetary policy tightening? We think that there is some truth to both stories but that the ECB will primarily stick to the first story. We expect the ECB to keep rates unchanged until early 2015”, they concluded.