Issel says he expects a 10 basis point cut in key deposit rates. However, according to him the world is more focused on whether there will be extension of current 60 billion euros quantitative easing (QE). He sees another 10-20 billion euros being added to that. If more ECB stimulus comes through then it would bring out a positive reaction and would put downward pressure on the euro, he says. According to Goh, the ECB president Draghi needs to deliver beyond market expectation if wants to see the euro down. However, if he disappoints euro will rally, says Goh. Analysts polled by Reuters expect the ECB to cut its deposit rate to -0.4 percent from -0.3 percent, charging banks more for keeping their cash with the bank overnight. They also see a 60 percent chance the ECB will raise its monthly asset purchases, probably by 10 billion euros to 70 billion euros a month.
For more news visit us at
http://www.marketmagnify.com/services.php
No comments:
Post a Comment