EUR: Policy developments set to drive volatility - ANZ

Policy developments are set to drive euro volatility this week as at the October meeting, a few ECB officials stressed the need for a ‘clear exit’ from QE – arguing that accelerating growth could justify ending QE even if inflation fails to pick-up, suggests the research team at ANZ.

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“The minutes will provide some clues on the degree to which ECB officials agreed on this point. Meanwhile, exploratory coalition talks in Germany should lead to a draft agreement – which will need to be approved by the Green Party (25 Nov). Should talks collapse, the risk of an early election (or a minority government) will weigh on the euro.”