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Forex Flash: ECB expected to sit on hands for now - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that the ECB is due to meet tomorrow, and despite soft data, the bank is expected to hold rates for now.
They add that as usual, the press conference afterwards will be most important, and Draghi is likely to get many questions about the macro outlook, the exchange rate and still simmering problems such as Italy and Slovenia. Additionally, they comment that in related news, the IMF finally signed off on a standby deal for Cyprus, which was really just a formality after the country agreed to the Troika’s demands last month. They write, “The IMF will contribute EUR1 bln to the bailout. The euro saw a small bounce on the news, but we expect recent trading ranges to hold ahead of ECB meeting tomorrow.”
