ECB meeting and Press Conference
The European Central Bank will deliver its rate decision at 14:45 MT time. The announcement will be followed by a press conference at 15:30 MT time.
At the last meeting, the ECB did not announce any policy changes. In the course of the press conference, the ECB President Mario Draghi expressed more confidence in the eurozone’s economy. A strong economy is a prerequisite for the central bank to reduce monetary stimulus or, in other words, taper its quantitative easing (QE) program. However, for the time being the ECB policymakers are not ready to cut the QE back. They want to receive additional confirmation of rising inflation rates. Despite the absence of the hawkish bias in the statement, Forex traders remained content with the upgraded economic forecasts and rushed into buying the EUR.
At the upcoming meeting, the euro should benefit from upward revision of the inflation outlook, or any indication that the QE tapering is getting closer.