SELL EUR V AUD, USD, NZD: ECB MONETARY POLICY MINUTES HIGHLIGHTS
After 5days higher EUR$ Statistically is a 80th percentile sell opportunity - the monetary policy minutes were dovish on the margin reiterating and stressing the ECB's willingness to "Boost stimulus again if needed". This should put downside pressure on EUR given september meeting is coming up (when most likely to add to easing).
EURAUD and EURUSD shorts here look technically the best and fundamentally with EURNZD also possible and an alternative for EURAUD (depends on your preference - higher differential = NZD; weaker monpol fwd guidance/ future rate stability = AUD).
ECB Monetary Policy Minutes Highlights:
ECB SAYS "WIDE AGREEMENT" AMONG COUNCIL MEMBERS NOT TO DISCUSS ANY MONETARY POLICY REACTION AT JULY 20-21 MEETING
-Brexit Vote Created New Headwinds for Eurozone Economy, Heightened Uncertainty-ECB Minutes
-Brexit Vote Could Affect Global Economy in Unpredictable Ways-ECB Minutes
-Policymakers Stressed ECB's Readiness to Boost Stimulus Again if Needed-ECB Minutes
-Policymakers Thought it Was Too Soon to Discuss Fresh Stimulus-ECB Minutes
-ECB Saw Market Impact of Brexit Vote "Contained"-ECB Minutes
-Policymakers Stressed Need To Safeguard Transmission of ECB Policies Through Banks-ECB Minutes
-Policymakers Noted Apparent Link Between Bank Stock Prices, Bank Lending Volumes-ECB Minutes
ECB ACCOUNT OF MONPOL MEETING
-Called For Measures To Address Weak Profitability
-No Clear Upward Trend In Inflation Path
-Premature To Discuss Fresh Stimulus
ECB'S PRAET: CALLS WEAK PRICES AN 'ONGOING SOURCE' OF CONCERN
EURAUD and EURUSD shorts here look technically the best and fundamentally with EURNZD also possible and an alternative for EURAUD (depends on your preference - higher differential = NZD; weaker monpol fwd guidance/ future rate stability = AUD).
ECB Monetary Policy Minutes Highlights:
ECB SAYS "WIDE AGREEMENT" AMONG COUNCIL MEMBERS NOT TO DISCUSS ANY MONETARY POLICY REACTION AT JULY 20-21 MEETING
-Brexit Vote Created New Headwinds for Eurozone Economy, Heightened Uncertainty-ECB Minutes
-Brexit Vote Could Affect Global Economy in Unpredictable Ways-ECB Minutes
-Policymakers Stressed ECB's Readiness to Boost Stimulus Again if Needed-ECB Minutes
-Policymakers Thought it Was Too Soon to Discuss Fresh Stimulus-ECB Minutes
-ECB Saw Market Impact of Brexit Vote "Contained"-ECB Minutes
-Policymakers Stressed Need To Safeguard Transmission of ECB Policies Through Banks-ECB Minutes
-Policymakers Noted Apparent Link Between Bank Stock Prices, Bank Lending Volumes-ECB Minutes
ECB ACCOUNT OF MONPOL MEETING
-Called For Measures To Address Weak Profitability
-No Clear Upward Trend In Inflation Path
-Premature To Discuss Fresh Stimulus
ECB'S PRAET: CALLS WEAK PRICES AN 'ONGOING SOURCE' OF CONCERN
