ECB to Slow PEPP Purchase Pace, EUR/USD and Bund Yields Muted

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ECB to Slow PEPP Purchase Pace, EUR/USD and Bund Yields Muted

EUR/USD, ECB Price Analysis & NewsECB Slows PEPP Purchases as ExpectedEuro Muted Following Expected DecisionECB Slows PEPP Purchases as Expect


EUR/USD, ECB Price Analysis & News

  • ECB Slows PEPP Purchases as Expected
  • Euro Muted Following Expected Decision

ECB Slows PEPP Purchases as Expected

The ECB announced that they will slow the pace of PEPP purchases from the current EUR 80bln/month with the change being called a “moderately” slower pace. A reminder, that this is an alteration of the prior guidance of “significantly higher pace” of purchases used over the past two quarters. Details are on the light side for now with Chief Lagarde expected to announce what the new pace is, alongside the latest staff projections. The Bank noted that inflation may moderately exceed goal for transitory period, which comes on the back of the recent inflation readings hitting a 10yr high.

Market reaction muted thus far in the Euro and Bund yields, given that the move to slow the pace of PEPP purchases had been largely priced in. That being said, in light of the hawkish expectations heading into the meeting, there is a risk of a disappointment after Lagarde’s presser.

ECB PEPP Purchases

Breaking: ECB to Slow PEPP Purchase Pace, EUR/USD and Bund Yields Muted

Looking ahead, ECB Lagarde’s press conference is scheduled for 13:30BST.

For the full commentary of the ECB Press Conference check out the @DailyFXTeam Twitter Handle.

The European Central Bank: A Forex Trader’s Guide

EURUSD, German Bund Instant Reaction

Breaking: ECB to Slow PEPP Purchase Pace, EUR/USD and Bund Yields Muted

Source: Refinitiv

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