Barclays says muted tone from Draghi could hurt EUR
Barclays Capital FX Strategy Research argues that ECB President Draghi is unlikely to offer meaningful hints on the ECB upcoming monetary policy at Jackson Hole.
Such an outcome, according to Barclays, will likely to disappoint some investors and introduce downside risks for the EUR.
"While careful steps towards 'parameter' adjustment, as Draghi called it at his Sintra speech, imply a removal of some ECB stimulus, the euro area likely will retain some QE and negative nominal rates throughout our forecast horizon, amid weak inflation dynamics ," Barclays adds.
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