Research Team at ING, suggests that the ECB takes centre stage next week, with hopes that Mario Draghi can again pull a white rabbit out of his hat. Key Quotes “However, the truth is that the ECB has almost reached the limits of what it can do and is now in an area in which additional stimulus does not necessarily do any good. Nevertheless, we think that Draghi will deliver a cocktail of several small steps: a cut of the deposit rate by 20bp, either in a two-tiered form or with some other compensating measures for the banks, a broadening of the scope of QE and a small €5bn increase in monthly QE purchases. On top of all of this, some verbal intervention suggesting that the ECB would tolerate an inflation overshoot would also help to anchor market expectations. Elsewhere, Germany’s industrial data will be interesting as it will not only be the first set of hard data of the new year, but also provide an insight into how severe the slowdown of German industry really is. In particular, the manufacturing sector has suffered a lot in recent months.” For more information, read our latest forex news.