ECB in focus this week – TDS

Analysts at TD Securities point out that the week ahead brings a slew of central bank meetings, none of which are likely to reveal a significant enough policy tweak to break recent ranges.

Key Quotes

“Given some slippage in the data and lack of macro projections however, we do see the risk that a cautious expectation is built ahead of the ECB meeting and before Friday's S&P ratings decision on Italy. This should keep EUR on the defensive but should more acutely play out in EURJPY downside rather than in EURUSD.”

“In light of this and with the US mid-terms nearly two weeks away, the USD should remain resilient. That said, the case for renewed optimism in the USD remains limited by the fact that the USD is already well loved and the notion that USD exceptionalism could be nearing an exhaustion point.”