EUR down 500pips in 3 days:eek: thinking that if the ECB raised rates, it wouldn't be fireworks.. more like a thermonuclear explosion. just trying to fantasize about an unexpected rate hike after all this mess, and how the market would react and what the overshoot limit would be?? 1.4 - 1.5? the reality is that there is somewhat of a liquidity crisis and it more likely those clowns will find another tool for easing
Listening to bloomberg today and they had a couple of guests on talking about a definite drop to 1.25 and possibly 1.20. Who knows what happen thereafter.
Thursday Look Ahead: Wall Street Will Watch ECB More than Bernanke, Data Published: Wednesday, 5 May 2010 | 9:10 PM ET Text Size By: Patti Domm CNBC Executive Editor U.S. markets will more likely heed the words of European Central Bank President Jean-Claude Trichet than Fed head Ben Bernanke Thursday. AP The European Central Bank holds a rates meeting before the New York open, and should make a statement by 7:45 a.m. Trichet then conducts a briefing, and thanks to the Greek debt crisis, New York's trading desks were as full of speculation about the content of the ECB's statement Wednesday, as they normally would be about a statement from the Fed.
Even if ECB lower rates tomorrow because of turmoil in Greece, it does not address Greece problems. The high interest rate for Greece is based off default risk. It will not go down in conjunction of any rate cut.