ECB: Will Trichet Back Off From His Hawkish Bias This Week?
Tuesday May 6, 12:50 pm ET By Terri Belkas,
Currency Analyst strategist@dailyfx.com
The European Central Bank is widely expected to leave rates steady this week at 4.00%, but the big question for the markets is: will he remain hawkish or focus more on mounting downside risks to growth? Estimates for Euro-zone CPI during April did ease to 3.3 percent from 3.6 percent, but this is still well above the ECB’s 2 percent target, and as a result there’s little doubt ‘price stability’ will be the foremost concern for Trichet. However, if he suggests that price pressures will moderate in the near-term – as they have recently started to do – or that feeble financial market conditions and the US economic slowdown are a major threat the Euro-zone growth, the euro could actually sell-off across the majors on Thursday.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment