ING on Thursday’s ECB decision
ING FX Strategy Research discusses EUR/USD outlook going into the ECB meeting on Thursday.
«We expect the ECB to announce a ‘lower for longer’ QE tapering, reducing the monthly QE purchases to €25bn and extending them until the end of 2018,» ING argues.
«We look for a knee-jerk reaction in EUR/USD higher, potentially testing the 1.20 level.
Yet: (a) the lower for longer QE is anchoring the scale of Bund sell-off; and
(b) Italian elections in early 2018, suggest only a ‘one-off’ EUR/USD upside,» ING argues.
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