News Headline Summary

ECB's Makuch says rate cut possible in 2013 and there was a very serious debate on interest rates at Thursday's policy meeting

- If situation does not improve is possible to expects move in interest rates next year.
- Rapid improvement in Eurozone economy unlikely.

Reaction details (12:38)

In reaction to these headlines;
- EUR/USD fell to fresh lows, moving lower by 10 pips from 1.2927 to 1.2917 over 2 minutes.
- Bund futures moved higher by 8 ticks over 60 seconds from 145.59 to 145.67.
- Mar Euribor moved 1 tick higher from 99.86 to 99.87 in immediate reaction.

Analysis details (12:40)

- These comments are the first seen from an ECB official following yesterday's press conference from the president Draghi. Draghi mentioned that rate cuts had been discussed yesterday but did not hint at rate cuts in the future therefore this is the first ECB official to imply a rate cut next year, and hence the market reaction.

07 Dec 2012 - 12:33 - Fixed Income Bank Speaker - Source: Newswires

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