There are a number of reasons why BNP Paribas economists believe the ECB is likely to refrain from additional policy easing on Thursday, including the opposition of some policymakers to further action evident in the minutes of the December meeting and more encouraging economic data.

“The press conference should signal a bias to ease, but President Draghi will likely be keen to avoid raising expectations too much for the time being. 

We maintain a bearish EUR view, but the market is currently avoiding adding to short EUR exposure (positioning currently stands at +16 according to our analysis,” BNPP argues.

This article originally appeared at eFXnews.