It has been nearly 5 years since the famous 'whatever it takes speech' but finally the times are a changing

CIBC FX Strategy Research is out with their thought on the ECB decision/statement/presser tomorrow.

They say:

  • Eurozone growth is looking more regionally broad based and disinflationary pressures have abated. The door is beginning to open, ever so slowly, to a downshift in monetary stimulus.

They cite that although the EUR has outperformed (with the EUR up more than 8% this year), they feel there is "likely more gains in store for the year ahead".

They speculate that the ECB could begin by announcing a moderation in bond-buying in coming months.

They look for the EURUSD to breach the 1.1600 level and to continue the move higher in 2018.

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