What to expect from the ECB

The main intrigue of the forthcoming meeting of the ECB is concerning changes in the QE program, which the market has been discussing recently. The fact that the ECB will curtail the quantitative easing program gradually and cautiously is obvious, but the main question is what time the folding will last and what volumes will be applied..

After the last comments of the head of the ECB Draghi, the market is following this indicator with special attention. Since the main changes in the QE program should be adopted before the end of this year. So, to support the euro, the ECB will have to reduce the monthly repurchase to 40 million a month and more from the current level of 60 million, which will provide appreciable support for the single currency. Preservation of the mitigation policy and further engaging in a wait-and-see attitude will put pressure on the European currency.

Also, market attention will be focused on the ECB’s attitude to the incentive program and how much it will be extended. And also do not forget about how vividly will be expressed the desire of the ECB to curtail the program of quantitative easing.

Therefore, this meeting will play a very significant role for the market and will have a strong impact on the dynamics of the European currency. For more information about the news of the market, please refer to…

Hanzenko Anton