Analysts at Bank of Tokyo Mitsubishi noted the turn around in the euro supply pst ECB announcements.
Key Quotes:
“In the accompanying press conference, President Draghi stated that the Governing Council discussed the option of introducing a tiered deposit system but decided against it as it was viewed as too complex and didn’t want to signal that there was no lower limit for rates. President Draghi added as well that he doesn’t anticipate it will be necessary to cut rates further from today’s perspective. The comments triggered a sharp reversal of initial euro weakness as the market scaled back expectations that rates are likely to be lowered even deeper into negative territory.”
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