The European Central Bank meets for its long-awaited policy decision on Thursday, potentially spelling out the beginning of the end of its asset-buying program in what could be one of the most critical market events in 2017.
ECB President Mario Draghi is widely expected to outline a plan to begin tapering the central bank’s bond purchases, though the details of how much and when have been the subject of much speculation.
Draghi’s main challenge will be to avoid sparking a euro rally. He’s also presumably aiming to avoid a “taper tantrum” in the bond market, such as was seen in the U.S. in 2013 when Ben Bernanke, who was then Federal Reserve chairman, indicated the central bank was preparing to begin winding down its monthly asset purchases.
“Ideally, the ECB would like to announce tapering as noiselessly as possible, limiting any upward movement of interest rates and the euro to a bare minimum,” wrote analysts at ING, in a note.
via MarketWatch
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
Latest posts by Alfonso Esparza (see all)
- Loonie Flat as NAFTA Hope is Cancelled by Oil Drop - 09/20/2018
- Mexican Peso Dragged Lower as Oil Falls on Trump’s OPEC Comments - 09/20/2018
- Oil Falls After Trump Targets OPEC - 09/20/2018