This EUR/USD outlook into the ECB meeting on Thursday from Nordea FX Strategy Research
«The meeting is expected to set the outline for the tapering
strategy; we expect the ECB to try to sell the reduction in asset
purchases as a dovish policy recalibration, after which monetary policy
will remain highly accommodative for a long time.
Specifically, we expect an extension of the asset purchases by at least six months,
by reducing the monthly net purchase volume from EUR 60bn per month to
EUR 30bn, effective from January 2018,» Nordea expects.
usual pattern of the EUR when the ECB extends its QE program is however
that the EUR weakens somewhat in the following days. This is our
prediction for this week,» Nordea argues.
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