Weidmann now commenting on the ECB's rate guidance
This further reinforces the notion that the central bank is unlikely to alter its rate guidance of only normalising policy "through the summer of 2019" during the March meeting next week.
If this is the case, then all there is to be dovish about the ECB next week is downward revisions to its economic forecasts. Aside from that, the central bank is likely to repeat a similar message in January.
I'm now starting to feel that with the element of surprise on its side, the euro could inch up a little more as it is doing now. Let's see if EUR/USD can crack above the 1.1400 handle and key resistance around 1.1410-20 next. I'm still inclined to short the currency at current levels though, but the lack of forward guidance change won't offer much for sellers unless Eurozone economic data continues to disappoint.
