The ECB meeting next week is not expected to bring new policy measures after the host of measures taken by the ECB over the past six weeks, according to analysts at Danske Bank.
“We expect the ECB to reiterate its commitment to stand ready to increase and extend the purchase programme and stand ready to act should more be needed.”
“The ECB has made attempts to remedy the market volatility of which European institutions have otherwise proved a source. The upcoming ECB meeting is unlikely to address such issues further and EUR is set to be haunted by this for some time.”
“If the ECB sticks to a wait-and-see policy with respect to the effects of what they have done as well as keeping soft guidance, this is unlikely to change much in the FX space. In turn, we look to the US and China to gauge the timing of a cyclical uptick which should instill some EUR confidence at a later point this year.”