The ECB might deliver the coordinated intervention with the EFSF which the market is waiting for at its next meeting, but risk remains that policy action directed by politicians often takes longer and is less substantial than initially expected, says Deutsche Bank in a note.
"With this in mind, and considering the Q2 bank lending survey and June M3 numbers provide less of an impetus for the central bank to announce another LTRO/interest rate cut," Deutsche adds.
Instead, Deutsche sees ECB President Mario Draghi elaborating on the message given in Thursday’s remarks at the meeting next week.
"If this mix of no easing but additional verbal intervention materializes, the EUR/USD squeeze may have more to go," Deutsche concludes.
http://www.efxnews.com/story/13784/no-rate-cut-or-ltro-ecb-meeting-next-week-deutsche-bank
"With this in mind, and considering the Q2 bank lending survey and June M3 numbers provide less of an impetus for the central bank to announce another LTRO/interest rate cut," Deutsche adds.
Instead, Deutsche sees ECB President Mario Draghi elaborating on the message given in Thursday’s remarks at the meeting next week.
"If this mix of no easing but additional verbal intervention materializes, the EUR/USD squeeze may have more to go," Deutsche concludes.
http://www.efxnews.com/story/13784/no-rate-cut-or-ltro-ecb-meeting-next-week-deutsche-bank
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