23 Jan 2014
Flash: EUR/USD eyes on EONIA rates - Danske Bank
FXstreet.com (Barcelona) - Danske Bank strategists note that the EONIA fixing yesterday was 0.24% and slightly below the ECB refi rate for the first time in four days.
Key Quotes
“Hence it seems that the extra liquidity from the MRO and the partly failed SMP drain on Tuesday have moved money market rates lower but the fixing remains close to the refi rate and there is still pressure on the ECB to take further action.”
“On the other hand, it might take a few more days for the impact from the extra liquidity to
materialise and we continue to monitor the development closely.”
Key Quotes
“Hence it seems that the extra liquidity from the MRO and the partly failed SMP drain on Tuesday have moved money market rates lower but the fixing remains close to the refi rate and there is still pressure on the ECB to take further action.”
“On the other hand, it might take a few more days for the impact from the extra liquidity to
materialise and we continue to monitor the development closely.”