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ECB unease over firmer euro risks slowing asset purchase exit: sources
Balazs Koranyi and Francesco Canepa

FRANKFURT (Reuters) - Rapid gains by the euro against the dollar are worrying a growing number of policymakers at the ECB, raising the chance its asset purchases will be phased out only slowly, three sources familiar with discussions told Reuters.

The scheme is due to expire at the end of 2017 but formal talks over its future are only beginning, meaning the European Central Bank is highly unlikely to take any decision at next Thursday’s rate meeting, the sources said.

Pressure is building for a gentle rather than a rapid reduction in the pace of asset buying from some policymakers, particularly in the bloc’s weaker economies, who are concerned that the strong euro could dampen inflation and hamper growth by making exports dearer, the sources said.

“The exchange rate has become a bigger issue,” one of the sources told Reuters. “It is now less favorable for an exit and a stronger argument for a muddle-through option.”

ECB unease over firmer euro risks slowing asset purchase exit: sources
 
Greek retail sales by volume grew 3.9 percent in June compared to the same month a year ago after a 0.3 percent increase in May, statistics service ELSTAT said on Thursday.

Retail sales were led higher by furniture, household appliances, apparel, footwear, drugs and cosmetics, the data showed.

Greece's economy expanded in the first three months of 2017 as gross domestic product grew by 0.4 percent compared to the final quarter of 2016 when it contracted by 1.1 percent.

[Reuters]
 
Situazione Eurospread:


Grecia 519 pb. (523)
Portogallo 250 pb. (250)
Italia 167 pb. (172)
Spagna 108 pb. (110)
Irlanda 33 pb. (34)
Francia 30 pb. (32)
Austria 21 pb. (22)

Bund Vs Bond -177 (-178)
 
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MILANO, 1 settembre (Reuters) - Partenza in rialzo per i
contratti sui Bund e sui Btp in una seduta che sembra riprendere
il trend innescatosi ieri dopo che alcune fonti hanno
sottolineato i crescenti timori in seno alla Bce per l'euro
forte e i possibili conseguenti effetti sul futuro del Qe.

(...)

** Ieri i rendimenti dei governativi della zona euro sono
scesi sensibilmente dopo che tre fonti hanno detto a Reuters che
l'euro forte preoccupa un numero sempre maggiore di consiglieri
della Bce e potrebbe portare anche a un rinvio delle decisioni
sul futuro del Qe o comunque a un percorso più graduale di
riduzione del programma.

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