No change expected now from the ECB - Yohay Elam

FXStreet (Łódź) - Yohay Elam, analyst at Forex Crunch, suggests that even though the ECB will keep monetary policy on hold today, Mario Draghi could signal some future moves at the following press conference.

Key quotes

"The TLTRO program comes into effect only now it seems there is no consensus for new immediate action."

"Also the tick up in core inflation can make the central bank wait."

"However, the ECB would certainly like to continue having a weak or even weaker euro."

"So, there is a good chance for stronger rhetoric from Draghi, promising imminent action in October or November: some form of QE."

"If Draghi plays down the chance of QE (or ABS), the euro could jump back up, and that is certainly undesirable for exports and for inflation."