EUR: Draghi вероятно няма да се опита да понижи Еврото, но няма и да бъде негативен

Nordea FX Strategy notes that at the ECB July meeting on Thursday, President Draghi will face a challenging task of tweaking the ECB's communication to a less dovish direction without triggering another bond market sell-off.

" While the ECB will monitor financial markets developments closely, it is unlikely to be too concerned about the magnitude of the moves seen so far. After all, the recent ECB accounts noted that as the economic conditions and fundamentals in the euro area improved further, some tightening in financial conditions, notably with respect to bond and foreign exchange markets, was to be expected. Further, the recent moves pale in comparison to the massacre seen in 2015."

That is not to say that Draghi would try to sound hawkish, but neither will he feel a pressing need to try to talk bond yields and the euro down. In the current environment, financial markets seem to be paying more attention to any hawkish elements central bankers are incorporating in their communications. "says Nodea.

"Overall then, at the moment we see risks tilted towards higher bond yields and a stronger euro in response to the ECB's message. "

Source: Bloomberg Pro Terminal

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