EUR: ECB To Deliver A ‘Hawkish Twist’ This Week – Danske

Danske Bank FX Strategy Research expects a hawkish tone from the ECB at the meeting this week after it was perceived as slightly dovish at the latest meeting.

"A lot of speculation among market participants has been on whether the ECB will change its forward guidance and remove the ‘or lower levels’ phrase from its guidance on policy rates.

However, in our view, sticking to this guidance and instead delivering a hawkish twist to the introductory statement is most likely.

We expect the ECB to argue that the options provided for further accommodation are less likely to be used," Danske argues.

Source: Danske Bank ResearchOriginal Article