- Analytics
- News and Tools
- Market News
- ECB meeting likely a non-event but risk balance is for a hawkish surprise in tone - BofA
ECB meeting likely a non-event but risk balance is for a hawkish surprise in tone - BofA
eFXdata reports that Bank of America Global Research discusses its expectations for ECB policy meeting.
"Although the meeting this week is not the time for an ECB policy shift, we see risks that the tone may start changing. The announcement of the policy review itself could be a flag for an eventual policy compromise. The ECB will also have to acknowledge the improving data, although from a very low basis, and fewer tail risks from trade policy and Brexit," BofA notes.
"Given green shoots in data and further upside to core inflation, a discussion about the risk balance shifting to "neutral" could start fairly soon. Combined with increasing emphasis on the need to monitor "side effects" from negative rates, the risk balance for this week is for a hawkish surprise. The risk of hawkish-leaning undertones at the ECB meeting supports our front-end steepener recommendations. We see positive risks for the EUR from the meeting," BofA adds.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
