XE Market Analysis: Europe – Oct 26, 2017

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The euro has been trading buoyantly into the ECB announcement today. EUR-USD clocked a one-week high of 1.1837 earlier in the Asian session, and while EUR-JPY and EUR-CHF have remained below their respective 22- and 33-month highs of yesterday, they remain underpinned, with both crosses having picked up from shallow dips. With both the September Markit PMIs and October German Ifo business climate survey reported mounting capacity pressures, there is a good chance that the ECB will cut back asset purchases by more than the EUR 30 bln that Bloomberg consensus suggests.