{"id":145046,"date":"2019-04-04T11:35:56","date_gmt":"2019-04-04T15:35:56","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=145046"},"modified":"2019-04-04T11:09:37","modified_gmt":"2019-04-04T15:09:37","slug":"ecb-monetary-policy-meeting-accounts-preview-march-2019","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/04\/ecb-monetary-policy-meeting-accounts-preview-march-2019\/","title":{"rendered":"ECB Monetary Policy Meeting Accounts Preview \u2013 March 2019"},"content":{"rendered":"
April 4, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

The European Central Bank will be releasing its monetary policy meeting accounts today.\u00a0The minutes cover the monetary policy meeting held in early March.<\/strong>\u00a0Back then, policymakers in the eurozone decided to leave all key interest rates unchanged.<\/p>\n

The central bank announced that it would release a fresh round of stimulus\u00a0<\/strong>packaged for banks while pledging to keep interest rates unchanged. The fresh round of financing, also known as the\u00a0Targeted Long Term Operations<\/em>\u00a0is aimed at raising liquidity in the markets.<\/p>\n

The\u00a0ECB also lowered its growth forecasts at the meeting in March<\/strong>. Cutting forecasts by 0.6 percentage points, the\u00a0ECB said that it expects eurozone\u2019s economy to grow at a pace of just 1.1%<\/strong>.<\/p>\n

This was a sharp revision comparing to the estimates from the December 2018 monetary policy meeting.<\/p>\n

Today\u2019s meeting accounts will cover the minutes of the ECB meeting and will reveal the discussions policymakers have had.<\/p>

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It was\u00a0in the December monetary policy meeting that officials discussed the TLTRO program.<\/strong>\u00a0The discussions started after growth in the eurozone began to slow.<\/p>\n

The TLTRO program<\/a>\u00a0was announced three months later at the March meeting.<\/p>\n

Draghi\u2019s Comments from ECB Watchers Conference<\/strong><\/h2>\n

Today\u2019s meeting minutes are unlikely to spring any surprises<\/strong>\u00a0given the fact that the ECB\u2019s press conference and policy decisions in March were broadly in line with market expectations.<\/p>\n

It is highly improbable that the central bank will turn more dovish than this.<\/p>\n

Recently,\u00a0speaking at the ECB watchers event,\u00a0Draghi said that the central bank should soften the impact of negative rates.<\/strong><\/p>\n

Interest rates in the eurozone have remained in the negative territory and raise the same concerns as in Japan. The long term use of negative rates erodes the profitability and margins for banks.<\/p>\n

This mostly comes as the margins for the financial institutions continue to decline due to negative rates<\/p>\n

The central bank chief stopped short of elaborating on the measures that the central bank would take.\u00a0He also said that there was a delay in the ECB achieving\u00a0its inflation goal<\/a>.<\/strong>\u00a0However, he did rule out the prospects of the ECB not achieving its inflation mandate.<\/p>\n

The euro is unlikely to react much to the release of the meeting minutes today. However, if the minutes reveal a more dovish tinge than what the markets expect, we could see the sentiment turning sour in the euro currency.<\/p>\n

US\u00a0Weekly Jobless Claims Forecast to Rise<\/strong><\/h2>\n

Following the release of the ECB\u2019s monetary policy meeting accounts, the\u00a0NY trading session will see the release of the weekly unemployment claims.<\/strong><\/p>\n

The\u00a0unemployment claims are forecast to rise from 211k to 215k for the week ending March 30th<\/sup>.<\/strong>\u00a0In the week before, unemployment claims fell to 211k from a revised print of 216k. The data indicates that the US labor markets remain on solid ground.<\/p>\n

\"US<\/a>
US Initial Jobles Claims, March 23<\/figcaption><\/figure>\n

The weekly claims report comes at a time when\u00a0investors are concerned about the weak reading in the official payrolls report in February<\/strong>. The US economy added the lowest number of jobs during the period. Investor concerns rose on account of this, with speculation that the momentum in growth could stall.<\/p>\n

As it stands,\u00a0the four-week moving average of the claims fell to 217,250 for the week ending March 23<\/strong>. With the current forecasts, the weekly claims for the March 30th<\/sup>\u00a0week could remain within the average trend.<\/p>\n

While the unemployment claims report is unlikely to impact the USD much, the data does come during a busy week where investors are eagerly waiting for this Friday\u2019s payrolls report to come out.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex The European Central Bank will be releasing its monetary policy meeting accounts today.\u00a0The minutes cover the monetary policy meeting held in early March.\u00a0Back then, policymakers in the eurozone decided to leave all key interest rates unchanged. The central bank announced that it would release a fresh round of stimulus\u00a0packaged for banks while pledging […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-145046","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=145046"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145046\/revisions"}],"predecessor-version":[{"id":145052,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145046\/revisions\/145052"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=145046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=145046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=145046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}