- ECB is expected to confirm an end to the asset purchases program,
- All policy rates are expected to remain at current levels until summer 2019 (Main Refinancing at 0%, deposit facility at -0.4%, and marginal lending facility at 0.25%),
- And all the eyes will be on ECB’s economic indicators forecast. Taking into consideration the latest deterioration in the Eurozone data, the ECB is likely to which we believe they will downgrade their GDP and Inflation projections (dovish) taking into consideration the latest deterioration in the Eurozone data.
Prices are holding up well this morning, but a push through the 11,000 resistance regions is needed to suggest further gains toward the major level at 11,200.
However, the bias remains bearish on Dax as the market is trading below the 11,000 mark. So, we expect an eventual test down and through the previous lows at 10,650 is a likely scenario to look out for.