How insane would it be for the ECB to raise rates 5/5/10

Discussion in 'Trading' started by OTCkrak, May 5, 2010.

  1. 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
  2. S2007S


    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.
  3. S2007S


    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.


    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.
  4. What kind of post is this?

    Expect QE, not rate raising. But I don't think you'll get QE tomorrow.
  5. WinSum


    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.
  6. Daal


    Rate hikes wouldn't help the EUR because it would implode the union
  7. C6H12O6


    Wait, I hear something... is that a "Thank you !" coming from european exporters ? :D