Does anyone want to win the balance sheet stakes?
President Draghi can expect the usual questioning monetary conditions on Thursday. For currencies, relative differentials matter and the ECB’s would join the argument that Fed normalisation through tapering could cast Eurozone settings in a ‘stimulative’ light. Yet, this is not enough: on a balance sheet-to-GDP basis, the conditions do not appear to be moving in the right direction – with future policy consequences.
Read the full report: UBS