6 Jun 2013
Flash: ECB/BoE round up – TD Securities
FXstreet.com (London) - TD Securities research teams have said that the focus so far this morning has been on the banks, where the MPC decided to hold rates and its asset purchase program steady. They said that was not too surprising to anyone however, so received little reaction from the GBP. As did the ECB, keeping their's at 0.5% as well.
The team suggests that the main event is still to come over the next couple hours with the ECB meeting and Draghi’s follow up press conference, saying that they just announced rates were not changed, but that had become the predominant expectation over the past couple weeks. In their opinion, the press conference should be much more important as the market watches how Draghi characterizes the potential for more targeted lending programs as well as any forecast revisions. “The EUR has been fairly buoyant overall so far, although a signal that targeted programs are less likely, and lower forecasts could weigh on the single currency.” They still view rallies as a better selling opportunity over the medium term.
The team suggests that the main event is still to come over the next couple hours with the ECB meeting and Draghi’s follow up press conference, saying that they just announced rates were not changed, but that had become the predominant expectation over the past couple weeks. In their opinion, the press conference should be much more important as the market watches how Draghi characterizes the potential for more targeted lending programs as well as any forecast revisions. “The EUR has been fairly buoyant overall so far, although a signal that targeted programs are less likely, and lower forecasts could weigh on the single currency.” They still view rallies as a better selling opportunity over the medium term.