ECB Minimum Bid Rate Decision 06/10/10

7:45am (NY Time) EU ECB Rate Decision  Forecast 1.00%  Previous 1.00%
ACTION: EUR/USD       N/A

ECB (European Central Bank)  will probably once again leave its minimum bid rate at 1.00% or unchanged this month.  The majority of analysts agree to this sentiment as  according to ECB, it is will keep rates unchaged until 2011 or at the very least, towards the end of 2010 before even considering tightening of their monetary policy.

Euro Zone is under tremendous pressure over the lack of confidence and debt crisis.  There is no perceivable reason for ECB to do anything else other than leaving rates unchanged at the current level.

And of course, as ECB rate decisions are concerned, generally ECB is not in the habit of surprising the market because any surprise on the world’s most traded currency pair (EUR/USD) would upset “price stability”, therefore I expected everything to be released as expected… The real mover will be the press conference hosted at 8:30am (in 45 minutes) by ECB Trichet, which may shed some new light over ECB’s monetary policy.

Of course, I suggest that we stick around during the release just in case ECB decides to surprise the market, but most likely we won’t see much of a market volatility…