In the middle of the week the main currency pair did not find tangible catalysts and is trading in a range.
Absolutely no productive news came out for the European single currency by Wednesday. Statistics are scarce. Today at 19:00 GMT the Federal Reserve will publish the minutes of its last meeting, and perhaps, to date, it is the only more or less significant driver.
And while there is no news, let’s talk about criticism of the ECB within Europe. Yesterday structural claims were made by a member of the board of the Bundesbank, Mr. Dombret, who stressed that the ECB’s steps to stimulate inflation are worthless. According to him, the measures of the European regulator create a risk of an inflation "bubble" on the asset market. The package of measures that the ECB offered as an incentive, according to Dombret’s assessment, is not free from risks. This, in turn, means that the side effects of such incentives may be more than enough.
Earlier Bundesbank itself warily talked about the plans of the ECB for stimulation. The bank believes that this will lead to the acceleration of inflation.
Though, on the other hand, for the euro zone it is now necessary in some way to revive this inflation. CPI is 0.3% y/y - it is too low for the region.
RoboForex Analytical Department