24 Jan 2014
Flash: EUR/USD - EONIA Fixing below Refi rate - Danske Bank
FXstreet.com (Edinburgh) - Danske Bank strategists note that yesterday the Eonia fixing remained below the refi rate and declined further, which eased some of the pressure on the ECB.
Key Quotes
“Nevertheless, we still expect that the ECB will ease again as we believe inflation will remain low.”
“While the choice of instrument is a close call, we expect a 10bp cut in the refi and the deposit rates in April. However, the Eonia fixing is still at a level where the refi rate is the leading policy rate and it might be the preferred instrument at the ECB (without a deposit cut).”
Key Quotes
“Nevertheless, we still expect that the ECB will ease again as we believe inflation will remain low.”
“While the choice of instrument is a close call, we expect a 10bp cut in the refi and the deposit rates in April. However, the Eonia fixing is still at a level where the refi rate is the leading policy rate and it might be the preferred instrument at the ECB (without a deposit cut).”