ECB meeting to signal bias to ease, but unlikely to be enough to trigger EUR selling - BNPP

FXStreet (Delhi) – Research Team at BNP Paribas, suggests that there are a number of reasons why their economists believe the ECB is likely to refrain from additional policy easing on Thursday, including the opposition of some policymakers to further action evident in the minutes of the December meeting and more encouraging economic data.

Key Quotes

“The press conference should signal a bias to ease, but President Draghi will likely be keen to avoid raising expectations too much for the time being. We maintain a bearish EUR view, but the market is currently avoiding adding to short EUR exposure (positioning currently stands at +16 according to our analysis.”