Even though a meager 3 of 70 economists actually expected Mario Draghi to announce some sort of rate cut at tomorrow's ECB press conference, moments ago MarketNews reported that according to "sources" a rate change tomorrow is unlikely even amid a dip in Europe's inflation.
ECB SOURCES: RATE CHANGE THURSDAY UNLIKELY EVEN AMID INFLATION DIP— MNI Eurozone (@MNIEurozone) November 6, 2013
- MarketNews report cites senior Eurosystem source as saying ECB will want to avoid over-reacting to fast-changing economic signals and avoid Fed Taper error.
- Report cites senior Eurosystem source as saying ECB will want to avoid over-reacting to fast-changing economic signals.
- ECB does not make “hasty moves or take decisions with short-term value,” report cites source as saying; said Fed announced plan to start tapering QE “too early”
The flashing red headline, as this non-news was picked up by the algos, was enough to send the EUR, and naturally the all important EURJPY spiking by another 40 pips, and taking the correlated US equity markets, right along with it pushing the Dow Jones to a fresh record high.
And that concludes your "fundamental trading" lesson for the day.