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29 May 2013
Flash: EUR standing up well to the dollar – Commerzbank
FXstreet.com (London) - Research teams note that compared with other G10 currencies the euro has stood up quite well during the recent USD rally.
The bank has explained that hardly anyone expects the ECB to actually implement its threat of negative deposit rates. Although mention that of course there is freedom of thought and ECB internal considerations about negative deposit rates do not pose any risk. The same does not apply for comments and even less so comments on the part of central bank officials.
Adding, the ECB’s rhetoric following the last rate cut has manoeuvred it into a corner from it will have trouble escaping. What happens if the economic indicators in the euro zone disappoint? How would the ECB then justify not implementing its threat of negative deposit rates?
The bank has explained that hardly anyone expects the ECB to actually implement its threat of negative deposit rates. Although mention that of course there is freedom of thought and ECB internal considerations about negative deposit rates do not pose any risk. The same does not apply for comments and even less so comments on the part of central bank officials.
Adding, the ECB’s rhetoric following the last rate cut has manoeuvred it into a corner from it will have trouble escaping. What happens if the economic indicators in the euro zone disappoint? How would the ECB then justify not implementing its threat of negative deposit rates?