FXstreet.com

This report has been deactivated

21

0

ECB: Preview of meeting on 6 November

Wed, Nov 5 2008, 17:28 GMT
by Søren Dijohn

Danske Bank A/S


Overview: The ECB is facing several of its risk scenarios. The outlook for growth has deteriorated markedly and the inflation outlook is increasingly favourable. We expect it to respond with a 50 bp lowering of policy rates at the meeting on Thursday. The market is pricing a total of 125bp in cuts over the coming nine months, which is in line with our forecast. However, the market is more front loaded in its pricing, with close to 75bp priced for Thursday, and a total easing of 100bp priced by December. Hence we see some risk that the November and December Eonia rates could rise.

Danske Bank  | Holmens Kanal 2-12, DK-1092 Copenhagen
http://www.danskebank.com/ | danskeresearch@danskebank.com

Legal disclaimer and risk disclosure

This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.

Related reports

Market Session Recaps - New York Session by FOREX.com
Mon, Nov 23 2009, 22:12 GMT

U.S. Forex Market Commentary by GCI
Mon, Nov 23 2009, 22:10 GMT

Daily Recommended Trades - Short term outlook by InnerFX
Mon, Nov 23 2009, 20:05 GMT

Fundamental Currencies Comments - Stocks, commodities gain; Dollar declines by ecPulse.com
Mon, Nov 23 2009, 19:02 GMT

Intraday Forex Technical Report - U.S. Update: Gold keeps leading by FXstreet.com Independent Analyst Team
Mon, Nov 23 2009, 16:01 GMT

eurusd, ecb, interestrate

View All

Related content


Interested in forex trading? forex brokerage firms!


FOREX.com
Contact the broker/FDM
Open a demo account
MG Financial Group
Contact the broker/FDM
Open a demo account
GFT
Contact the broker/FDM
Open a demo account
MIG INVESTMENTS SA
Contact the broker/FDM
Open a demo account
Saxo Bank A/S
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.