ECB: more data required, EUR/USD consolidates - Rabobank

Analysts at Rabobank explained that the Accounts of the July ECB meeting confirmed the Governing Council’s view that more data is required to reassess the appropriateness of the current policy stance.

Key Quotes:

"As further explained in the growth and inflation analysis below, we see little reason for the Governing Council to drastically change course in September.

Since the previous update of this publication on August 9, the most notable development is perhaps that the market no longer seems convinced of a deposit rate cut in the foreseeable future. This shift in expectations from further ECB action into ECB inaction –at least with respect to the deposit rate– has also driven the Eonia and Euribor curves up by a few basis points over the course of August, particularly at the longer dated points on these curves.

However, even though money market curves have flattened as a result, they continue to reflect the view that the ECB will on balance remain biased towards the dovish side."