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Euro firm as markets price in ECB deposit rate hike

Published 03/17/2017, 06:43 AM
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Investing.com - The euro firm as euro-zone money markets price in possible hike in the ECB's deposit rate.
The single currency was up 0.04% at $1.0770 at 06.15 ET. The dollar index was off 0.07% at 100.02.
The greenback was little changed against the yen at the 113 level.
ECB member Ewald Nowotny said bank to decide later on possible deposit rate hike before or after end of its QE program.
The ECB asset-buying program ends this year but the bank has left itself the option of extending it beyond that.
Forward Eonia rates indicate an 80% chance of a hike in the deposit rate of about 10 basis points at ECB December policy meeting.
That was up from odds of 60% a week ago. A hike in March has been fully priced.
The ECB's deposit rate currently stands at minus -0.4% and its key lending rate at 0.0%.
Eonia is the average euro-zone overnight interbank lending rate.

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