ECB should speed up the reduction of its balance sheet | 14 tháng tư 2023

14 tháng tư 2023, EUR/USD

ECB should speed up the reduction of its balance sheet

EURUSD trading plan:

The European Central Bank should speed up the reduction of its balance sheet and could stop reinvesting cash from debt maturing in its largest bond buying scheme to complement further interest rate hikes, Belgian policymaker Pierre Wunsch said. The ECB is now allowing 15 billion euros worth of debt per month to expire in its 3.2 trillion-euro Asset Purchase Programme, and Wunsch argued that this process has gone well so far. "The market has reacted very well, and our balance sheet is still too big," he said. Wunsch, among the first last year to recognise Europe's inflation problem, also said the ECB needed to keep raising interest rates and the market's expectation for another 75 basis points of increases was "reasonable," but expectations of a rate cut around the turn of the year were not.

Investment idea: buy 1.1030 and take profit 1.1085.

David Johnson
Analyst of «FreshForex» company
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