Forex Flash: ECB rate decision is key focus for EUR this week - Investec

FXstreet.com (Barcelona) - Investec Treasury analysts believe that this week´s focus for EUR will be the ECB rate decision on Thursday, where the market is increasingly pricing in a 25bp rate cut.

They see that a rate cut is largely a psychological effort to help boost confidence in the stagnant economic area, and as such its effect upon markets and the struggling peripheral nation economies is likely to be limited. Instead, they feel that the market will closely analyse Draghi’s press conference to gauge the tone for further non-standard measures to address the financial fragmentation in the Euro area and the continued deleveraging in the periphery.