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3 May 2013
Forex Flash: ECB retains options moving forward – Deutsche Bank
FXstreet.com (Barcelona) - Overt fears that the ECB would fumble in the Great Global Central Bank pass the liquidity parcel game were eased yesterday as Draghi kept his options open more than he perhaps might have been expected to do.
There have been times in the last year where he has suggested that the ECB has done pretty much all it can do but perhaps he's learnt from the OMT program that bazookas can work at the right time. “One would have to say that the consequences of negative deposit rates would have to be thought through pretty carefully but in not ruling them out he subtly signaled a further easing bias.” suggests Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
This was reflected in the Euro, which went from 1.3135 to an intraday low of 1.3037 after these remarks and then settled modestly above these lower levels.
There have been times in the last year where he has suggested that the ECB has done pretty much all it can do but perhaps he's learnt from the OMT program that bazookas can work at the right time. “One would have to say that the consequences of negative deposit rates would have to be thought through pretty carefully but in not ruling them out he subtly signaled a further easing bias.” suggests Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
This was reflected in the Euro, which went from 1.3135 to an intraday low of 1.3037 after these remarks and then settled modestly above these lower levels.