The main event will be the press conference following the ECB meeting. Sincerates have reached the bottom, focus will be on the details of the ABS and coveredbond purchase programme, see ECB Preview Draghi will reveal details on ABS andcovered bond programmes, 30 September. We expect the press conference to revolvearound the ECB’s new ‘soft target’ of a balance sheet expansion. Draghi did notinterpret last week’s low TLTRO take-up as a disappointment but insisted that theDecember auction is needed in order to assess the success of the programme. Hence,it seems evident that the ECB will be in waiting mode for the next couple of months.While the pressure on the ECB to use outright Quantitative Easing (QE) in publicassets is increasing, it is still premature to take this step in our view. Instead, webelieve Draghi will continue to strike a very dovish tone and reiterate that the ECB isready to use QE if necessary.
US jobless claims are expected to rise a bit after hitting very low levels in the pasttwo weeks. Consensus is for a rise to 297k from 293k the previous week.
Danmarks Nationalbank will publish FX reserves.
Read the full report: FX Daily