Although no action is being taken to abolish QE on 25 January, a large majority of market participants are of the opinion that the ECB will announce its final decision in June this year. According to a Bloomberg survey, nearly 50% of economists believe the ECB will declare a final date for QE at the meeting on June 14th. The bottom line is the strong growth of the European economy in recent months, which has increased the likelihood that inflation will increase.
Notwithstanding the ECB's desire to end QE, the key interest rate will remain low. Most market participants are of the opinion that they will stay close to 0.00%, at least until the second half of 2019.
EUR continued to rise, accumulating all the expectations and good economic data from the region, only registering a growth of 2.69% from the beginning of the year. We are waiting for the next ECB meeting and Mario Draghi statements on how the next central bank moves will be. As far as EUR is concerned, we will stick to the buy the dip strategy (at least for the moment).
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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