Comments from BNP Paribas today
The ECB is likely to take up the baton from the Fed as the central bank in the news in the week ahead with a number of speakers scheduled including Praet today and Draghi on Wednesday, notes BNP Paribas.
"We expect more dovish communications particularly in the context of persistently firm EUR, building up to an expansion of the QE program at the December meeting. Our economists also expect September business sentiment surveys on Wednesday and Thursday to surprise to the downside," BNPP projects.
"Elsewhere, over the weekend Syriza emerged from a second election in eight months winning 145/300 seats in parliament, therefore likely being able to form a coalition with the Independent Greeks party. Such a coalition will be pro-European," BNPP adds.
"All-in-all, a dovish ECB, weaker data and a risk-neutral Greek election outcome should weigh on the EUR," BNPP argues.
BNPP continues to position short EURUSD and EURGBP via options.
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