Traders Eye ECB Move in September

The European Central Bank (ECB) is widely expected to hold interest rates steady on Thursday with many market watchers expecting the bank to announce in September plans to reduce its bond-buying program.

ECB President Mario Draghi’s speech in Sintra was interpreted by many economists as a sign that the central bank was more optimistic about the economy and could start “tapering” earlier than expected. Since his speech in June, the ECB has tried to calm down those expectations in order to prevent an unwanted tightening of monetary conditions.

“Our mission is not yet accomplished. We need patience and persistence. We need to be patient, because inflation convergence needs more time to show through convincingly in the data,” the ECB’s Chief Economist Peter Praet said in a speech July 6 in Paris. In the same speech, he also said that the recovery in the euro zone “seems to have gathered further momentum.”

CNBC

Will Draghi Drop Any Tapering Clues?

Event Risk Overload

USD/CAD Canadian Dollar Rises After Oil Price Bounce

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.