Euro little changed after ECB minutes

12:45 PM 7 October 2021

Minutes from the ECB September meeting have just been released however provided no new information. Below we present some key takeaways:

  • All members agreed persistently favored financing conditions along with somewhat improved medium-term outlook allowed to scale back PEPP purchases
  • A significant improvement in the assessment for the inflation outlook over the course of the year was acknowledged.
  • Near-term increase in inflation largely driven by temporary factors that would fade in the medium-term and not call for policy tightening
  • Even without PEPP, a point was made that overall monetary policy stance remains highly accommodative
  • A concern was expressed that slower pace of PEPP purchases might induce market perceptions of tighter-than-expected policy
  • An argument was made that markets were already expecting an end to PEPP purchases in March next year.

EURUSD saw a relatively small reaction to today’s ECB Minutes release. The most popular currency pair continued to trade around resistance 1.1564  which is strengthened by 50 SMA (red line). Source: xStation5

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits