FXstreet.com (Barcelona) - The ECB’s zero deposit rate period started yesterday. “So far in 2012, we’ve seen about a €125bn fall in the deposit facility at the start of a new maintenance period, but today’s data showed a huge €483bn fall, from €808bn on Tuesday to €325bn yesterday”, wrote TD Securities. “However, this should not be taken as all of this cash getting out and being put the work as the ECB’s current account balance rose by nearly the exact same amount (about €466bn)”, they added, pointing to banks’ same average reserve requirement over this monthly maintenance period, which means the need of the same average daily current account balances: “So by the end of this monthly maintenance period, you should see the deposit facility right back to or above the €800bn reported at the end of the last maintenance period”.
Forex Flash: €483B drop in ECB’s deposit facility in one day – TD Securities
Thu, Jul 12 2012, 14:44 GMT | FXstreet.com
EUR/USD May 19 at 01:21 GMT
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Any opinions, news, research, analyses, prices or other information contained on this story, 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.
