Home/Central Bank Watch/EUR/Forex News Round Up/USD

ECB Draghi Missing Jackson Hole Puts Emphasis on European Data

Share Print 0

Mario Draghi is letting the numbers do the talking.

After five weeks of silence, the European Central Bank president is leaving it largely to a raft of economic data to fine-tune policy expectations ahead of the Governing Council’s next meeting on Sept. 8. Reports covering inflation to business confidence and unemployment in the coming days may signal whether more stimulus is needed to sustain the recovery and revive price growth amid potential fallout from Britain’s vote to leave the European Union.

Momentum in the 19-nation euro area has so far shown few signs of losing pace, and economists at both JPMorgan Chase & Co and Danske Bank A/S pushed back projections for further easing. But executives in Germany, the region’s largest economy, are beginning to wake up to the Brexit shock, suggesting that more severe consequences may still be ahead.

“I don’t think there is anything in the data calendar that is so decisive that it will either change the market or the ECB or both,” said Peter Schaffrik, head of European rates strategy at Royal Bank of Canada. “Inflation is going to go up slightly but it’s not going to go up fast enough to make them think ‘we don’t need to do anything.”’

via Bloomberg

This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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

@alfonso_forex

Back to Top