ECB policy deliberations.
At its latest interest rate-setting meeting on September 7, the ECB admitted that the euro's dramatic double-digit appreciation against the dollar this year has tightened financial conditions, making it more difficult for the central bank to meet its 2% inflation target. Yet despite the euro’s disinflationary effects, the ECB intends to announce its plans to begin scaling back its quantitative easing (QE) programme at its next policy meeting on October 26.
Futures markets see a probability of more than 50% that the United States will increase rates in December, up from 20% in early September.
Euro-area economic confidence is at the highest since July 2007, and positive in every country, putting pressure on the ECB to unwind.
Market concerns over whether OPEC/non-OPEC oil cuts will be extended could rise ahead of the next OPEC meeting on November 30.
