ECB the key highlight in the session ahead
Not much else on the agenda in Europe
Today is all about event risk and there will be two big ones, the first being the ECB monetary policy meeting decision and then followed by the US CPI data release.
The former is expected to be leaning more towards a non-event with the ECB likely to keep taper talks on the sidelines until they update the next set of macro projections.
Adding to that is the likely continued reiteration that inflation will be transitory and that they will keep rates low. There is the possibility of talking about adjusting the pace of PEPP purchases but any tapering specifically is likely to be sidestepped.
That said, there is the off-chance that the ECB could miscommunicate more hawkishly (I can’t imagine it being a dovish mistake) so be prepared for that.
Otherwise, this should be a bit of a placeholder before July. The policy decision is scheduled for 1145 GMT before Lagarde’s press conference at 1230 GMT.
Here is a neat crib sheet from ING ahead of the event: