Do markets expect much response from today's...>

EURO: Do markets expect much response from today's ECB presser?

- Using overnight implied volatility as a gauge, options markets are expecting a

decent response to today's ECB policy decision, including the critical decision

over whether to expand the PEPP element of their asset purchase programme.

- EUR/USD overnight implied vols have added around 10 points since the beginning

of the week, and now trade at around 15 points, the highest since early April

and comfortably above the 12m rolling daily average of 6 points.

- EUR/GBP overnight vols have gone similarly bid, although to a lesser extent as

EUR/USD captures both the ECB decision today as well as tomorrow's Nonfarm

Payrolls release. Nonetheless, EUR/GBP vols now at multi-month highs of 13

points. EU Brexit negotiator Barnier is due to brief press on Brexit

negotiations on Friday, which could keep the contract supported beyond today's

ECB.