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50bps Hike Puts EUR/USD at New Daily Highs, But Short of Week's Best Levels

ECB
  • The immediate response to the larger-than-expected ECB rate hike has seen EUR bid against all others, putting EUR/USD through the earlier highs to touch 1.2490. The rally is holding initially, but price action remains shy of the week's best levels at 1.0273 at typing.
  • Across fixed income markets, Bund futures saw fresh lows of 149.70, breaking the 50-dma in the process at 150.03. The German curve trades flatter, with front-end yields higher by over 15bps for the 2yr.
  • Italian BTP futures saw a more muted response, with markets awaiting the finer details of the bank's TPI tool at today's press conference.
  • Dec-22 Euribor futures very briefly spiked before falling sharply to sit at 98.455, the lowest since mid-June.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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