An update via Reuters on where the European Central Bank is at in terms of balance sheet trimming and rate hikes. Reuters citing "sources close to the discussion said on Thursday."
- The European Central Bank could soon start talks on ending reinvestments of cash maturing in its 3.3 trillion euro ($3.3 trillion) Asset Purchase Programme
- a decision is not urgent and is unlikely to be taken next month
- While a reduction in the ECB's balance sheet would be a natural next step in normalising policy, policymakers are now focused on rate hikes and see reinvestments as a secondary issue, four sources with direct knowledge of the situation told Reuters on condition of anonymity.
The issue of reinvestment has been flagged by some ECB members already. But, just an update from Reuters on it.
Link to the piece is here for more.
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EUR/USD chart - languishing under parity but not going anywhere fast, Maybe Powell will shake things up with his speech on Friday.
