ECB meeting likely to be an uneventful – TDS

Sandeep Kanihama FXStreet Contributor

According to analysts at TD Securities, Draghi's final ECB meeting should be an uneventful celebration of his 8 years as President.

Key Quotes

“We expect a dovish lean, given concern about inflation expectations and softer growth trends. We don't expect any clear policy signals in our base case.”

“Rates: Our base case sees some slight downward pressure on yields but we expect a muted reaction overall. Market focus turns to the implementation of the ECB's tiered deposit system (30 Oct) as well as the start of the new QE purchases (1 Nov).”

“FX: Similarly, we expect EURUSD to remain tame. Most directional risks favour moderate downside as we expect Draghi to ride off on a dovish note. Market attention will soon turn to any early hints on policy preferences from incoming President Lagarde.”

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.

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