The European Central Bank (ECB) could soon start talks on ending reinvestments of cash maturing in its 3.3 trillion euro ($3.3 trillion) Asset Purchase Programme (APP), but a decision is not urgent and is unlikely to be taken next month, sources close to the discussion said to Reuters on Thursday.
The sources said that discussions on ending redemptions have yet to start and policymakers have not even had a seminar on the issue, which is normally a precursor to any decision.
‘There is just no urgency,’ one of the sources said. ‘I think interest rates are our main focus right now.’
A decision on rates coupled with reinvestments may be too much for markets and there's no point in taking that risk right now.
EUR/USD remains sidelines, recently retreating towards 0.9950, as traders await Fed Chair Powell’s key speech at the Jackson hole Symposium.