4 Dec 2013
Flash: EUR to react with ECB back in focus? - BBH
FXstreet.com (London) - A research team at BBH said the ECB meets tomorrow even as excess liquidity has fallen toward EUR155 bln.
Key Quotes:
“Besides dovish comments and keeping all options on the table, it is not expected to take new action”.
“We note that the term structure appears to reflect the pricing in of approximately 15 bp as the next refi rate cut”.
“Separately, we note that EONIA, which was up to almost 30 bp at the end of last week before month end, is now below 12 bp and is likely to ease further in the days ahead, before year-end pressure begin anew”.
Key Quotes:
“Besides dovish comments and keeping all options on the table, it is not expected to take new action”.
“We note that the term structure appears to reflect the pricing in of approximately 15 bp as the next refi rate cut”.
“Separately, we note that EONIA, which was up to almost 30 bp at the end of last week before month end, is now below 12 bp and is likely to ease further in the days ahead, before year-end pressure begin anew”.