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3 Jun 2015
Look for Draghi to reassure EUR bears once again – BNPP
FXStreet (Barcelona) - The BNP Paribas Team expects Draghi to stand tall on the QE purchases, and further remain bearish on the single currency and EUR crosses.
Key Quotes
“The EUR’s rally on Tuesday could be partly attributed to the eurozone May CPI surprised on the upside, boosting eurozone yields as the data and leading to questions on the longevity of the ECB’s QE program.”
“However, with the ECB committed to returning CPI and inflation expectations back towards 2.0%, we expect President Draghi to once again use his post ECB press conference Wednesday as an opportunity to push back against the idea that purchases could be curtailed.”
“Updated staff projections will also be released, and, while inflation expectations will likely be revised up slightly, we would emphasize that the staff’s estimates will assume continuation of the purchase program.”
“We remain broadly bearish on the EUR and would favour fading this latest rebound in EUR crosses.”
Key Quotes
“The EUR’s rally on Tuesday could be partly attributed to the eurozone May CPI surprised on the upside, boosting eurozone yields as the data and leading to questions on the longevity of the ECB’s QE program.”
“However, with the ECB committed to returning CPI and inflation expectations back towards 2.0%, we expect President Draghi to once again use his post ECB press conference Wednesday as an opportunity to push back against the idea that purchases could be curtailed.”
“Updated staff projections will also be released, and, while inflation expectations will likely be revised up slightly, we would emphasize that the staff’s estimates will assume continuation of the purchase program.”
“We remain broadly bearish on the EUR and would favour fading this latest rebound in EUR crosses.”