[flv:http://www.newsprofiteer.com/100809-ecbrate/100809-ecbrate.mp4 480 360]
7:45am (NY Time) EU ECB Rate Decision Forecast 1.00% Previous 1.00%
ACTION: EUR/USD N/A
ECB (European Central Bank) will most likely leave rates at an unchanged level of 1.00% once again. It is almost impossible for ECB to surprise the market at this point and cut or hike current rate by 0.25%. Numerous of ECB officials, including chairman Trichet, stated recently that the current rate is appropriate, the expectation for ECB rates among analysts is pretty much neutral.
Furthermore ECB is still concerned over the imbalanced economic recovery over its member countries, therefore there would be no justification for a rate hike, even though RBA surprised the market by hiking rates, ECB is not likely to follow suit.
And of course, based on past track records, ECB is not in the habit of surprising the market, therefore not much market reactions usually follow this release.
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 extreme 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 as usual.
Related posts:
- ECB Minimum Bid Rate Decision 09/03/09
- ECB Minimum Bid Rate Decision 11/05/09
- ECB Minimum Bid Rate Decision (Interest rate decision) 12/03/09
- ECB Trichet Press Conference 10/08/09
- Forex News Trading EU ECB Interest Rate Decision 05/05/11
- ECB Trichet Press Conference 12/03/09
- ECB Trichet Press Conference 11/05/09
- ECB Trichet Press Conference 08/06/09
- ECB Trichet Press Conference 09/03/09
- ECB Trichet Press Conference 06/10/10 – Mininum Bid Rate Decision
