The decision of the ECB is coming up and more previews are coming up. How much will the ECB taper? Does it matter? There is a trading pattern that appears with every ECB meeting. What can we expect? Here is the view from Nordea:
Here is their view, courtesy of eFXnews:
Nordea FX Strategy Research discusses EUR/USD outlook into the ECB meeting on Thursday.
“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.
“The 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.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.
