The euro is fairly strong against the dollar and the pound this morning, ahead of the ECB’s press conference this Thursday. Whilst no major policy decisions are expected, recent euro strength, which was flagged as a concern by the ECB’s Chief Economist recently, is likely to be discussed. Another talking point could be the Federal Reserve’s recent commitment to a 2% inflation rate and whether the ECB will also follow inflation targeting.
Officials are also expected to discuss their bond buying program, which was designed to help the European economy recover after the coronavirus crisis. Some may wish to ramp up the program to provide extra aid.
Industrial production figures were released for Germany this morning, rising by 1.2% month-on-month in July, compared to market expectations of a 4.7% gain. German Balance of Trade figures and GDP for the Euro Area will be released tomorrow.
