ECB: Do not expect changes to QE in 2017 - BNPP

Sandeep Kanihama FXStreet Contributor

With the risk of deflation having significantly diminished, the ECB is set to go ahead with a reduced pace of asset purchases until December 2017 expects research team at BNP Paribas.

Key Quotes

“Until a sustained rise in underlying inflation is observed – something we believe is unlikely until H2 2017, the earliest – the ECB will maintain its sustained presence in the markets. It preserves a high degree of flexibility with an asymmetric reaction function, given the subdued, underlying inflation and only moderate growth. Against this backdrop, we do not expect any changes to the QE programme over the course of 2017, with the programme eventually coming to an end in 2018.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations.

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements.

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.