Sep05sep06

[VicS]

how low is sep05sep06 in euribor going to go!! is it going negative

 

[TWI]

Market now pricing risk of ECB rate cut as nearly twice as large as that of a hike. Most likely is that they leave rates unchanged. With the Euro having fallen back in trade weighted terms also there is really less need for ECB to act. Think this last phase of the rally is very suspect...There again I am not shorting outrights yet.

 

[VicS]

It would be good if the ECB do cut rates, the market would become more volatile, but it seems that ECB have a strong stance on leaving rates unchanged which will not be a surprise!!!!!