News Headline Summary

Majority of ECB governing council said to support rate cut according to sources

- ECB declined to comment.

- Sources say there is a possibility of a reduction early next year if the economy doesn't pick up according to three official sources.

Update details:

- Yesterday ECB president Draghi said that a rate cut had been discussed but did not imply how many officials were in favour of a cut to rates. This source comment suggests a large portion were in favour of a cut to the refi rate, therefore implying a rate cut in the near future is possible.

Reaction details:

- In reaction to this headline Mar Euribor immediately moved higher from 99.86+ to 99.88.
- EUR/USD fell from 20 pips from 1.2920 to 1.2900.
- Bund futures climbed 10 ticks from 145.64 to 145.74.

Print 12:42, 07 Dec 2012 - Economic commentary - Source: Newswires