Deutsche Bank and Commerzbank commented on ECB interest rate reductions this week:
- This will be good for those who own the assets
- It will further complicate those who save
- It is neither a steady course nor responsible
The central bank is expected to cut interest rates (as part of actions to support the eurozone economy. As evidence of the difficulties the bloc's economy faces:
Last week, German industrial production climbed -0.6% on a monthly basis, against + 0.4% expected
The ECB meeting is scheduled for 12 September
It is interesting to discuss who wins, who loses and what the central bank should and should not do. There is nothing wrong with this. It is also quite useful for traders to discuss what the ECB will and will not do.
TD expect the ECB to cut 20 basis points from the deposit rate
Reboot quantitative easing, $40bn/mth
EUR/USD to stay offered
cites the break below 1.10, and
"We do not think the move should be faded ahead of the ECB's large-scale easing next week."
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