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ECB preview: No much action expected, Draghi to keep door open - RBS

FXStreet (Bali) - According to RBS FX Strategists, holding a view in line with the market, no much action is expected from this month's ECB meeting and press conference.

Key Quotes

"In line with the market, we do not expect much action from this month's ECB meeting and press conference. Still, we do expect Mr Draghi to keep the door open to doing more in the future and to ensure that the tone of the press conference maintains the pressure on the EUR."

"Such a view is supported by further weakness of Asian currencies, seemingly in large part driven by renewed BoJ policy easing. It is also important given that Euro area short-end market interest rates have moved back into positive territory, which would appear to have potentially removed a significant EUR negative for the time being."

"Beyond this week, December is still looking like the key meeting as it will be accompanied by updated macro projections. While it may come a little too early for any potential announcement on sovereign QE, the forecasts may lay the ground for additional easing early next year if the outlook stays weak and/or previously announced asset purchases/tLTROs disappoint."

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