BoA recommend buying of euro before the ECB meeting

Investors expect decisive action by the European Central Bank in March, but forex strategists at Bank of America warned, that the institution can not justify the hopes.

In order to ensure sensitive and sustainable decline in the euro, regulators should have served a real surprise, according to analysts. Troubled situation in the financial markets fueled expectations for an active relief of monetary policy, but BoA are not convinced that the ECB is capable of aggressive and unconventional actions.

The manager of the institution Mario Draghi will probably try hard to soften the disappointment, but the rhetoric will hardly be enough to compensate for the bitterness of unjustified hopes.

By BoA added that the March meeting of the ECB will be the most complex in recent years. Financial market volatility and global shocks seem more powerful factors influencing the euro than the actions of monetary regulators.

Strategists predict that before the meeting of the institution, scheduled for March 10, the euro could fall further. But experts say it would open attractive opportunities for opening tactical long positions in anticipation of reduction of short positions and weakening risk appetite.