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Commenting on the ECB's rates decision, Tim Graf, head of macro strategy - Europe at State Street says:
“The reaction is interesting in that, even though there was no surprise whatsoever about the 12.45 events, the EUR is weakening and Bunds/BTPs rallying. The risk that we all talked about was that this was fully priced and you could have seen the reverse happen after what was largely a consensus result. For me, this weights the risks for the press conference more towards EUR weakening. In other words, if the bare minimum versus expectations results in weaker euro and higher bonds, surely whatever non-standard policies to come should add to the downside pressure in the EUR."
