:What’s Expected

Time of release: 09/06/2012 11:45 GMT

Primary Pair Impact: EURUSD

Expected: 0.75%

Previous: 0.75%

Forecast: 0.75%

:Why Is This Event Important

Although the European Central Bank is widely expected to keep the benchmark interest rate at 1.00%, President Mario Draghi may push through additional non-standard measures as the debt crisis continues to drag on the real economy. Indeed, there’s reports that the European Central Bank will introduce a sterilized, unlimited bond purchasing program to stem the heightening risk for contagion, but we may see the Governing Council refrain from capping bond yields as they look to target short-term maturities. However, the rate decision may fail to shore up investor confidence as there appears to be a growing rift within the ECB, and we may see President Mario Draghi attempt to buy more time as the non-standard comes under increased scrutiny.

Written By David Song, Currency Analyst

איך ארז אומר: "קחו סיכונים בהיגיון"