The big event tonight is the ECB meeting at 22:45 and Mario Draghi's press conference at 23:30

Chris Weston

Pepperstone

The big event tonight is the ECB meeting at 22:45 and Mario Draghi's press conference at 23:30. There are some speculating on a cut to the refinancing rate (or the rate to which European borrow from the ECB), while Goldman Sachs even feels we could see a cut the to the deposit rate, to a negative print. The deposit rate is the rate to which the ECB charges banks to hold funds with the central bank, so a cut here would actually take the rate to a negative number, therefore penalising banks for holding funds with them. The vast consensus believes there will be limited action, although there is the prospect that Mario Draghi talks down the EUR to a degree given the low levels of inflation in the EMU. If Goldman's (out of consensus) call does come to fruition expect a 150 to 200 pip drop in the pair.


Chris Weston
Head of Research
Pepperstone

Highly accomplished financial markets professional, with experience at a number of top-tier global institutions on both the buy and sell-side. A natural communicator with a strong ability to analyse macro-economic trends, capital flows and market...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.