ECB: Focus on Draghi today – BBH

The focus of markets today is on the ECB meeting, and specifically Draghi's press conference, according to analysts at BBH. 

Key Quotes

“The ECB President is expected to continue preparing the market for what is likely to be an announcement at the September meeting, which will also feature new staff forecasts.  The September meeting is seen as the likely venue for announcing an extension of asset purchases, albeit at a slower pace, into next year.”

“However, premature tightening of financial conditions is not warranted either.  Draghi may lean against it by reiterating that the risks of deflation have ebbed primarily because of the extraordinary monetary stance.  Prices have not yet entered a self-sustaining, durable path to the target.  Draghi's tone may be just as important as the content of his remarks today.  Our reading of sentiment suggests a bias to buy euros on pullbacks.”