Euro little changed after ECB minutes

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