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3 Jun 2014
And for the main event…– BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes the main event of the will be the ECB.
Key Quotes:
"The main event of the week is the ECB meeting. Inflation, or indeed the lack thereof, is understood to be a key spur for official action."
"At the end of last week, both Spain and Italy reported soft CPI figures. Yesterday Germany did too."
"The fact that the flash euro area estimate came in today at 0.5%, down from 0.7% in April and below the prior consensus of 0.6% is not surprising. It simply reinforces confidence that the ECB will cut rates on Thursday."
"In addition, the consensus also expects some new targeted lending facility. We note that the core rate, which for the ECB simply excludes energy prices,fell to 0.7% from 1.0%. This suggests the decline in energy prices is not the main culprit behind the drop in euro area inflation."
Key Quotes:
"The main event of the week is the ECB meeting. Inflation, or indeed the lack thereof, is understood to be a key spur for official action."
"At the end of last week, both Spain and Italy reported soft CPI figures. Yesterday Germany did too."
"The fact that the flash euro area estimate came in today at 0.5%, down from 0.7% in April and below the prior consensus of 0.6% is not surprising. It simply reinforces confidence that the ECB will cut rates on Thursday."
"In addition, the consensus also expects some new targeted lending facility. We note that the core rate, which for the ECB simply excludes energy prices,fell to 0.7% from 1.0%. This suggests the decline in energy prices is not the main culprit behind the drop in euro area inflation."