EUR: Quiet start to the ECB week – Commerzbank

The euro had a quiet start to the week, something that does not come as a surprise in view of the ECB meeting on Thursday, explains Esther Reichelt, Analyst at Commerzbank.

Key Quotes

“Despite the fact that the meeting is seen as a nonevent. The ECB will have to reduce its assets purchases as it will otherwise reach its legal limits, a fact that everyone is likely to be aware of by now. That means the decision itself should hardly move the euro. Instead data such as today’s sentiment indicators is getting more important once again. Our economists expect the positive outlook to be confirmed today, but while few are going to believe the ECB that it is merely lowering the degree of monetary policy expansion due to the positive economic environment it would no doubt affect the euro should doubts about this scenario arise at some stage.”