Will the ECB introduce more QE tomorrow? (Mike Vaughan)

GBP EUR Exchange Rate: Weekly Review July 16  

Sterling has remained relatively flat against the Euro today but tomorrow could be a different story. At 12:45 the European Central Bank will release its latest interest rate decision, however it is not this to keep an eye on it is whether the central bank decides to increase Quantitative Easing (QE). With interest rates already at 0.05% the bank has little room for maneuver and with the Euro Zone still suffering from deflationary pressures they may decide to print more money in the form of QE. Should they do this then I would look for GBP/EUR to push towards the 1.30 level. Anyone with an interest in the Euro should also look out for the monetary policy statement held by Mario Draghi at 13.30

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