4 Jun 2015
ECB: Confusing but pretty much unchanged outlook - BAML
FXStreet (Guatemala) - Analysts at Bank of america Merrill Lynch explained that the big picture shows no change to the quantified or qualitative assessment of the economy relative to March but Draghi was quite confusing with the economic outlook this time around.
Key Quotes:
"He talked about the EA losing momentum and about weakness being generated abroad. But data so far has come in line with ECB forecasts, if not better, while the new set of forecasts has only downgraded growth for 2017."
"And that downgrade is mostly driven by lower expected capex (with exports slightly stronger), likely due to higher long term rates given the cut-off date for external assumptions was in the middle of the early may sell-off (May 12)."
Key Quotes:
"He talked about the EA losing momentum and about weakness being generated abroad. But data so far has come in line with ECB forecasts, if not better, while the new set of forecasts has only downgraded growth for 2017."
"And that downgrade is mostly driven by lower expected capex (with exports slightly stronger), likely due to higher long term rates given the cut-off date for external assumptions was in the middle of the early may sell-off (May 12)."