Policy developments are set to drive euro volatility this week as at the October meeting, a few ECB officials stressed the need for a ‘clear exit’ from QE – arguing that accelerating growth could justify ending QE even if inflation fails to pick-up, suggests the research team at ANZ.
Key Quotes
“The minutes will provide some clues on the degree to which ECB officials agreed on this point. Meanwhile, exploratory coalition talks in Germany should lead to a draft agreement – which will need to be approved by the Green Party (25 Nov). Should talks collapse, the risk of an early election (or a minority government) will weigh on the euro.”
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