Intraday Market Thoughts

Euro Hit as Draghi Hints at Negative Rates

by Ashraf Laidi
May 2, 2013 16:11

The ECB dual rate cuts in the lending and refinancing rate reduced the spread between the lending (emergency) rate and the deposit rates to 1.00%-- lowest since 2008 (Oct, Nov & Dec 2008), a time when the ECB rushed to reduce the cost of emergency loans at the peak of the global financial crisis. Euro losses intensified as Draghi reiterated the willingness to deliver a negative deposit interest rate from its current zero %. All our existing non- USD Premium yen shorts hit their targets and so did our longstanding EURUSD short. 1 EURJPY hit all targets, the other stopped out. We just issued 2 fresh trades in EURUSD alongside a tactical and technical note in the latest Premium Insights

Act Exp Prev GMT
ECB Interest Rate Decision (MAY 2)
0.50% 0.50% 0.75% May 02 11:45
 
 

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