ECB Minimum Bid Rate Decision 08/06/09

7:45am (NY Time) EU ECB Rate Decision  Forecast 1.00%  Previous 1.00%
ACTION: EUR/USD       N/A

ECB (European Central Bank) is once again to leave rates at an unchanged level of 1.00%.  It is very unlikely for ECB to surprise the market and cut current rate or even hike the rate by 0.25%.  As numerous of ECB officials stated recently that the current rate is appropriate, the expectation for ECB rates among analysts is pretty much neutral.

The important event will be the press conference at 8:30am, or 45 minutes after this release.  ECB Chairman Trichet will deliver a written statement and then host a lengthy Q&A session.  Market is more likely to be volatile during the press conference than the actual rate decision, as Trichet sometimes may drop hints on future ECB monetary policy direction; therefore, I’d pretty much skip this news and just pay attention to the press conference itself.

[flv:http://www.newsprofiteer.com/080609-ecbrate/080609-ecbrate.mp4 480 360]

UPDATE: No trade as the rate was kept unchanged.  Decided to wait for Trichet press conference for better direction.

Related posts:

1. ECB Minimum Bid Rate Decision 10/08/09
2. ECB Minimum Bid Rate Decision 09/03/09
3. ECB Minimum Bid Rate Decision 11/05/09
4. ECB Minimum Bid Rate Decision (Interest rate decision) 12/03/09
5. ECB Trichet Press Conference 10/08/09
6. Forex News Trading EU ECB Interest Rate Decision 05/05/11
7. ECB Trichet Press Conference 08/06/09
8. ECB Trichet Press Conference 11/05/09
9. ECB Trichet Press Conference 12/03/09
10. ECB Trichet Press Conference 09/03/09

Tagged as: Chairman Trichet, current rate, ECB, economic outlook, european central bank, Forecast, Forex, Forex News, Inflation, Interest rate, Key Interest rate, monetary policy, Trichet