Sunday 17 December 2017

ECB to ponder euro strength and targets

A survey last Friday showed a quarter of economists polled by Reuters expect the ECB to announce a change to its asset purchase programme on Thursday, down from over half three weeks ago. Stock photo
A survey last Friday showed a quarter of economists polled by Reuters expect the ECB to announce a change to its asset purchase programme on Thursday, down from over half three weeks ago. Stock photo

The strength of the euro is likely to be the main discussion point at Thursday's European Central Bank (ECB) meeting, as policymakers weigh up what it means for their inflation target and how quickly they can scale back stimulus.

There has been a dramatic shift in expectations for Central Bank announcements recently.

A survey last Friday showed a quarter of economists polled by Reuters expect the ECB to announce a change to its asset purchase programme on Thursday, down from over half three weeks ago.

The main culprit is the euro, which with all the uncertainty generated by everything from Brexit to Donald Trump to North Korea, is emerging as a safe-haven currency.

Investors will be hoping for a swift resolution to a looming deadline to raise the US debt ceiling, which stands at about $19.8tn (€16.7tn).

At home, Ireland's biggest hotel group, Dalata, will release half-year results tomorrow, as it continues to benefit from rising average room rates. Those rates have returned to peak levels.

Also tomorrow, Cairn Homes delivers interim results. It's likely to have sold 97 homes in the first half of the year, and likely to sell almost 300 in the second half.

Reuters

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