Market expects a dovish ECB - ANZ

Analysts at ANZ explained that the markets were at a crossroads ahead of tonight’s ECB meeting and following comments from the Fed’s Williams that rates should go up sooner rather than later.

Key Quotes:

"No change in rates from the Bank of Canada and a more upbeat tone from the Bank of England about near-term UK growth prospects added to the lack of short-term market direction. Having weakened post the ISM non-manufacturing index, the USD consolidated following a soft print for July German industrial production and the drop in UK manufacturing output in July.

Expectations that the ECB will be dovish when it meets tonight lent some support to European bourses.

The DAX rose 0.6% and the FTSE 100 was up 0.3%. Oil was higher, while gold eased 0.4% to USD1,350/oz. The yield on the US 10-yr note was little changed at 1.53%, while earlier moves in European bond markets were also muted."