ECB and Spain to take the centre stage next week – ANZ

In the coming week, ECB meet and escalating Catalonian crisis are going to be the major market moving events, according to analysts at ANZ.

Key Quotes

“The Catalonian story continues, with Spain’s PM apparently starting procedures to invoke Article 155. However, uncertainty is already in the price; and, barring an escalation in violence, we expect markets to remain unmoved. The key risk for the euro next week is the ECB meeting and its announcement on ‘QExit’. While we expect the ECB to go for a ‘slow for longer’ scenario, with EUR30bn of monthly purchases for nine months starting in January 2018, the governing council may opt for cautious wording, with some downside risks for the euro.”