ECB Rate Stament more Damaging to EUR than Portugal

Renewed uncertainty in the euro zone may have put the euro under pressure in recent days, but analysts argue that it’s the European Central Bank (ECB) meeting, rather than the developments in Portugal, that pose a bigger risk to the single currency.
Analysts say expectations that the ECB’s policy statement on Thursday will sound dovish, with President Mario Draghi keeping monetary easing on the table, should lead to further weakness in the euro.
“Today’s ECB policy announcement is a much larger threat to the euro,” BNP Paribas said in a note. “The ECB statement could see an increased emphasis on forward guidance, while also highlighting an implicit contrast between the Fed’s QE (quantitative easing) tapering signal and the ECB’s accommodative stance for the foreseeable future.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza