The main event is the ECB meeting, where inflation will be top of the agenda again after core inflation reached an all-time low of 0.7% in December. We expect Draghi to sound dovish and that the ECB will discuss a deposit rate cut but we do not expect an announcement of further easing measures. Inflation expectations have continued their downward trend since the latest refi rate cut in November and this is another argument for Draghi to sound dovish.
Read the full report: FX Daily
Danske Bank