The main event will be the press conference following the ECB meeting. Since rates have reached the bottom, focus will be on the details of the ABS and covered bond purchase programme, see ECB Preview Draghi will reveal details on ABS and covered bond programmes , 30 September. We expect the press conference to revolve around the ECB's new 'soft target' of a balance sheet expansion. Draghi did not interpret last week's low TLTRO take-up as a disappointment but insisted that the December auction is needed in order to assess the success of the programme. Hence, it seems evident that the ECB will be in waiting mode for the next couple of months. While the pressure on the ECB to use outright Quantitative Easing (QE) in public assets is increasing, it is still premature to take this step in our view. Instead, we believe Draghi will continue to strike a very dovish tone and reiterate that the ECB is ready to use QE if necessary.
US jobless claims are expected to rise a bit after hitting very low levels in the past two weeks. Consensus is for a rise to 297k from 293k the previous week.
Danmarks Nationalbank will publish FX reserves.
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