ECB minutes in the limelight today – BNPP

In today’s session, focus will be on the release of the account of the ECB’s June meeting as well as speeches from Governing Council members Praet, Weidmann and Nowotny.

Key Quotes

“The June meeting account has been superseded by comments from various ECB members, particularly Draghi’s speech last Tuesday. Hence, the minutes should have a muted impact on the EUR. Communication from ECB speakers looks set to be a case of two steps forwards, one step back.”

“EURUSD continues to retrace from the 2017 highs printed last week, reflecting investors taking profit on their extreme long EURUSD exposure ahead of Friday’s payrolls release. For US yields and the USD to rebound more significantly, we likely need to see US data validate the Fed’s view that the weakness in growth and inflation is transitory. In this context, Friday’s payrolls release will be key and the market will focus on any signals from the employment component of Thursday’s non-manufacturing ISM release.”