• Home
  • Pro
  • Partners
  • Help and support
  • English
  • 简体中文
  • 繁体中文
  • ไทย
  • Tiếng Việt
  • Español
  • Português
  • لغة عربية
Pepperstone logo
Pepperstone logo
  • Ways to trade
    • Trading accounts

      Choose from two account types depending on your strategy

    • Premium clients

      Exclusive rewards and bespoke benefits for high-vol traders

    • Pricing

      Discover our tight spreads, plus all other possble fees

    • Professional
    • Active trader program
    • Demo trading
    • Refer a friend
    • Trading hours
    • 24-hour trading
    • Maintenance
    • Risk management
  • Markets
    • Forex CFDs

      Get great rates on majors like EUR/USD, plus minors and exotics

    • Commodity CFDs

      Trade on metals, energies and softs, with spreads from 2 cents on oil

    • Cryptocurrency CFDs

      Speculate on Bitcoin, Ether and more, with a trusted broker

    • Shares CFDs
    • ETF CFDs
    • Index CFDs
    • Currency Index CFD
    • Dividends for index CFDs
    • Dividends for share CFDs
    • CFD forwards
  • Trading platforms
    • TradingView

      Trade through the world-famous supercharts with great pricing

    • MetaTrader 5

      Explore the apex in trading automation with our execution tech

    • The Pepperstone platform
    • MetaTrader 4
    • CopyTrading
    • cTrader
    • Trading tools
  • Market analysis
    • Navigating markets

      Latest news and analysis from our experts

    • The Daily Fix

      Your regular round-up of key events

    • Meet the analysts

      Our global team giving your trading the edge

  • About us
    • Who we are

      Pepperstone was born from the dream of making trading better

    • Company news
    • Company awards
    • Protecting clients online
    • Trading accounts

      Choose from two account types depending on your strategy

    • Premium clients

      Exclusive rewards and bespoke benefits for high-vol traders

    • Pricing

      Discover our tight spreads, plus all other possble fees

    • Professional
    • Active trader program
    • Demo trading
    • Refer a friend
    • Trading hours
    • 24-hour trading
    • Maintenance
    • Risk management
    • Forex CFDs

      Get great rates on majors like EUR/USD, plus minors and exotics

    • Commodity CFDs

      Trade on metals, energies and softs, with spreads from 2 cents on oil

    • Cryptocurrency CFDs

      Speculate on Bitcoin, Ether and more, with a trusted broker

    • Shares CFDs
    • ETF CFDs
    • Index CFDs
    • Currency Index CFD
    • Dividends for index CFDs
    • Dividends for share CFDs
    • CFD forwards
    • TradingView

      Trade through the world-famous supercharts with great pricing

    • MetaTrader 5

      Explore the apex in trading automation with our execution tech

    • The Pepperstone platform
    • MetaTrader 4
    • CopyTrading
    • cTrader
    • Trading tools
    • Navigating markets

      Latest news and analysis from our experts

    • The Daily Fix

      Your regular round-up of key events

    • Meet the analysts

      Our global team giving your trading the edge

    • Who we are

      Pepperstone was born from the dream of making trading better

    • Company news
    • Company awards
    • Protecting clients online

ECB Meeting Preview: Over to you, Ms Lagarde

Dec 11, 2019
Share
Thursday’s ECB meeting will be light on major monetary policy changes but a historic one, as it sees the first press conference of new President, Christine Lagarde. Her debut will attract a lot of attention as her every word will be closely scrutinised by traders for clues on the direction of financial markets.

The Lagarde style

Mario Draghi was a technical communicator par excellence. There was never a slip of the tongue and he reshaped and moulded the ECB by increasing the tools at his disposal and bringing more flexibility to its mandate of ‘price stability’.

Christine Lagarde on the other hand is a more unconventional choice to lead the ECB; she is not an economist and has never formulated monetary policy. It is her communication skills and diplomacy which stand out, and these may be needed more than ever as the rift between the doves and the hawks is sizeable at present, at least behind closed doors. Look out for Lagarde to err on the side of caution and continuity. Indeed, will we hear Draghi’s go-to phrase of ‘patience, persistence and prudence’?

Adverse effects of unconventional policy

Key for Lagarde will be building a consensus around the ECB’s next steps. The division in the Governing Council comes from those who see a positive impact of negative rates (Chief Economist Lane) to Italy’s Visco who believes bond purchases are more effective. This change of attitude to negative rates could well spread among other members so monitor any possible changes to Lagarde’s comments on adverse effects.

Staff projections

No significant changes are expected in the updated forecasts, so sticking with the gradual increase in core inflation and a tepid growth outlook. New 2022 forecasts may give some signal for future policy direction, with GDP back to potential and inflation around 1.7%. Clouds on the macro front have started to stabilise more recently, pushing inflation expectations up from all-time lows - watch to see if the introductory statement acknowledges this. That said, the ECB is firmly on hold for now and the projections should simply reinforce this.

Strategic review

Lagarde and the ECB is embarking on the bank’s first strategic review of its main monetary policy objectives and tools for 16 years. Any detail is unlikely, but focus will centre on hints around returning to a symmetric inflation target and whether there is a complete overhaul of the definition of ‘price stability’. This could be the next battleground between the doves and hawks – essentially, those for and against policy easing.

Market impact

Continuity is likely to prevail at this meeting with the scope of the strategy review influencing markets further down the line. A focus on consensus building and watching the smooth implementation of the current easing package is the order of the day for the new President. This means EUR/USD trading in familiar ranges overall. Lagarde’s style and tone is the wild card.

The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients.

Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.

Other sites

  • The Trade Off
  • Partners
  • Group
  • Careers

Ways to trade

  • Pricing
  • Trading accounts
  • Pro
  • Active Trader program
  • Refer a friend
  • Trading hours

Platforms

  • Trading Platforms
  • Trading tools

Markets & Symbols

  • Forex
  • Shares
  • ETFs
  • Indices
  • Commodities
  • Currency indices
  • Cryptocurrencies
  • CFD Forwards

Analysis

  • Navigating Markets
  • The Daily Fix
  • Meet the analysts

Learn to Trade

  • Trading guides
  • Videos
  • Webinars
Pepperstone logo
support@pepperstone.com
1786 628 1209
#1 Pineapple House,
Old Fort Bay, Nassau,
New Providence, The Bahamas
  • Legal documents
  • Privacy policy
  • Website terms and conditions
  • Cookie policy
  • Sitemap

© 2025 Pepperstone Markets Limited | Company registration number 177174 B | SIA-F217

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

81.1% of retail investor accounts lose money when trading CFDs with this provider.

You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

You don't own or have rights in the underlying assets. Past performance is no indication of future performance and tax laws are subject to change. The information on this website is general in nature and doesn't take into account your or your client's personal objectives, financial circumstances, or needs. Please read our RDN and other legal documents and ensure you fully understand the risks before you make any trading decisions. We encourage you to seek independent advice.

Pepperstone Markets Limited is located at

#1 Pineapple House, Old Fort Bay, Nassau, New Providence, The Bahamas

and is licensed and regulated by The Securities Commission of The Bahamas,( SIA-F217).

The information on this site and the products and services offered are not intended for distribution to any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.