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Draghi to go for a wait-and-see stance - FXStreet

FXStreet (Bali) - According to Valeria Bednarik, Chief Analyst at FXStreet, Thursday's ECB should not provide much news, adding that Draghi will likely prefer for a wait-and-see stance.

Key Quotes

"The fact is that the ECB has launched a chunk of measures early September by cutting three main interest rates, including inter deposits one that was already negative, announcing to buy private-sector assets, to finally left doors opened for further easing if needed. In the meantime, the first round of LTRO was launched with a mild weak success in its first round. My take is that we are not going to see much news on October meeting, and that Draghi will go for a wait-and-see stance. I don’t believe even a weaker than expected EZ inflation will be enough to push his hand this month.

Market reaction may be to continue pricing in an unclear-to-come QE, which will keep the EUR under pressure against most rivals, with Draghi getting closer to its target of a weaker currency to boost growth, without having to do much."

AUD/NZD anchored to the downside

AUD/NZD is trading at 1.1165, down -0.31% on the day, having posted a daily high at 1.1211 and low at 1.1142.
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