Draghi tongue-tied on the EUR? - ING

Analysts at ING suggest that Thursday's ECB meeting will be highlight of week and in particular, what President Draghi has to say about recent EUR strength.

Key Quotes

“Even though media reports suggest that EUR strength is causing concern for some Governing Council members - which may lead to possible delays to tapering - we doubt Draghi has enough verbal firepower to talk the EUR substantially lower.”

“Friday's US jobs data maintains the positive risk and weak dollar global market backdrop. US data is light this week, but we have a host of Fed speakers that may shed light on whether balance sheet reduction starts in September, and whether they still favour a rate hike in December. Risks are that we see some more cautious policy rhetoric in light of recent US data.”