The main event is the ECB Governing Council meeting where we expect the ECB toremain on hold. The meeting follows after the ECB announced a significant easingpackage followed by further details about these measures. In light of this, we expectlimited market impact from today’s meeting but Draghi should continue to have adovish stance, as inflation has declined to a new cycle-low and as the latest activitydata have been weak. Expect Draghi to repeat that the ECB is committed tounconventional instruments but to also stress that it takes time before the impact ofthe June easing measures is seen.
In the UK the Bank of England is expected to keep rates unchanged. The inflationreport due to be released next week will be more interesting, as it will give moreinformation about future monetary policy decisions.
German industrial production is expected to increase in June but after the veryweak factory orders released yesterday, there is downside risk to the forecast. Thefigure will give more information about German GDP growth in Q2 but according tothe Bundesbank GDP stalled in Q2 as geopolitical concerns, among other factors,weighed on industrial output.
In Norway, industrial production covering June is published.
Read the full report: FX Daily