ECB rate hike odds are rising today and now sit at precisely 50% compared to a 50% chance of no hike.
The only fundamental news today was the German ZEW business sentiment survey. The main index improved to -11.4 from -12.3 but the metric of current conditions fell to -79.4 from -71.3. That’s hardly a reason to hike rates but we’ve certainly heard a pushback from hawks leading into the decision and those betting on ‘no change’ are getting nervous.
Watch them go and hike 12.5 bps and stump everyone.
This article was written by Adam Button at www.forexlive.com. Source