ECB sources: Broad support starting to form over Sept rate cut

  • Broad support starting to form for Sept cut but not a done deal
  • Inflation developing as expected, economic growth is weak, wage pressure easing

The market was already pricing in a 99% chance of a move so this isn’t a big surprise but the early signalling also suggests that October is in play. Current Oct pricing is 40 bps (including the 25 bps in Sept).

This article was written by Adam Button at www.forexlive.com. Source