EUR: July ECB Meeting Likely Non-Event With Little Implications For EUR – NAB

EUR/USD likes its range and is not going anywhere fast. Will the meeting of the European Central Bank change that? Probably not.

Here is their view, courtesy of eFXdata:

NAB Research discusses the expectations around this week’s ECB July policy meeting.

“July meeting an “interim” meeting and likely non-event with no forecast updates. ECB to continue with the APP taper and to hold rates through “the summer” of 2019,” NAB notes.

“Implications for FX and rates: – The meeting has little in the way of implications for EUR which has been range bound in a wide 1.15-1.1850 range.

A tweak to the reinvestment policy to the extent it surprises markets could see the Euro curve flatter which may at the margin weigh on EUR. NAB’s view though is the reinvestment policy will only be discussed, but is unlikely be changed at this meeting,” NAB argues.

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