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2 Mar 2015
Key events ahead in the Eurozone – TDS
FXStreet (Barcelona) - The TD Securities Team previews the key event and data ahead in this week in the Eurozone – ECB decision and Eurozone CPI release.
Key Quotes
“ECB Decision (Thurs 5 March): This should not be a particularly market moving ECB meeting for once, as the major announcements have been made. There are still a few operational details which needed to be clarified in terms of exactly when asset purchases will begin and under exactly what rules, which may lead to some relative shifts in the EGB market, while having the rubber finally meet the road in March in starting purchases should reinforce the trend for euro lower.”
“Eurozone CPI (Mon 2 March): With oil prices having stabilized in February and the upside we saw in German CPI, apparently led by higher food prices, Eurozone CPI should also push higher in Feb.”
“Markets are looking for CPI to rise from –0.6% Y/Y in Jan to -0.5% Y/Y in Feb, but the risks here lie to the upside after the uptick in the preliminary German, Spanish, and Italian data.”
“That being said, any upside here shouldn’t have a significant market impact as the ECB has already committed to doing QE until at least September 2016, and the focus for markets will be on the start of EGB purchases in March.”
Key Quotes
“ECB Decision (Thurs 5 March): This should not be a particularly market moving ECB meeting for once, as the major announcements have been made. There are still a few operational details which needed to be clarified in terms of exactly when asset purchases will begin and under exactly what rules, which may lead to some relative shifts in the EGB market, while having the rubber finally meet the road in March in starting purchases should reinforce the trend for euro lower.”
“Eurozone CPI (Mon 2 March): With oil prices having stabilized in February and the upside we saw in German CPI, apparently led by higher food prices, Eurozone CPI should also push higher in Feb.”
“Markets are looking for CPI to rise from –0.6% Y/Y in Jan to -0.5% Y/Y in Feb, but the risks here lie to the upside after the uptick in the preliminary German, Spanish, and Italian data.”
“That being said, any upside here shouldn’t have a significant market impact as the ECB has already committed to doing QE until at least September 2016, and the focus for markets will be on the start of EGB purchases in March.”