GavaldaFX Forex Blog

Look out for 12.45 GMT today because European Central Bank will announce their decision to cut or hold interest rates. Consensus is they will cut with (at least) .5 points bringing the rate to 1.5%, but there’s also talk about a whole 1-point cut. Trichet doesn’t have a choice today I think, they have to avoid panic in the markets and doing anything other than what market expects will cause speculation and panic… My advise: prepare your EUR shorts for the decision _AND_ Q&A after!