Downbeat economic data and the possibility of further easing weighed on the euro and franc in the previous week. This time, we’ll hear from the ECB themselves.
ECB monetary policy statement (Sept. 12, 11:45 am GMT)
The euro zone has been no stranger to weaker than expected economic figures these days, so market participants have been speculating that it’s high-time for the central bank to provide stimulus.
Although some ECB officials have still spoken against the need for more easing, incoming ECB head Lagarde has already called upon European governments to launch fiscal stimulus. That’s monetary policy code for this ship’s about to go down!
Some insiders report that the ECB is leaning towards cutting the deposit rate by 0.10% to 0.20% and possibly keep the door open for another cut before the end of the year. Another option might be for the central bank to implement a tiered asset purchase program.
In the absence of major economic data from the Swiss economy, the franc might take its cues from changes in market sentiment like it did in previous weeks.
Factors that could influence this include Brexit developments, the usual set of trade updates, and geopolitical risks in Asia.
Missed last week’s price action? Read the EUR & CHF price recap for September 2 – 6!