Euro’s rise to keep taper plans on the back burner

The appreciation of the single currency since the ECB’s last meeting has strengthened the case to delay the formal announcement of asset purchase tapering until October. But with growth strong and inflation edging up, President Draghi is likely to hint again after the meeting next week that the current pace of purchases need not be sustained into 2018. He could limit any resulting upward pressure on the euro by suggesting that the taper will be gradual and that interest rates will be kept on hold for longer than markets now expect.