Thursday, August 4, 2011

Brown Brothers Harriman comments on euro zone’s agenda

Analysts at Brown Brothers Harriman note that today’s ECB meeting will be very important taking into account intensifying stresses in the euro area.

The specialists underline that the markets will watch if Trichet gives hawkish comments using his coded language.

It may happen that the European Central Bank will decide to pause its tightening cycle given the fact that the region’s economy is weak and the Swiss National Bank eased its monetary policy yesterday.

In addition, there will be some political news from Europe. Italian Prime Minister Silvio Berlusconi will speak before parliament and Spain’s Prime Minister Jose Luis Zapatero canceled his holiday in order to address problems in Spain.

BBH specialists, however, think that such measures won’t help to increase investors’ confidence in the ability of euro zone’s authorities to overcome the crisis. In their view, European policymakers will act only in case another serious slump of the market.   

daily eurusd 15-11
Chart. Daily EUR/USD

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