Ahead of each European Central Bank meeting ING distribute their awesome 'cheat sheet'.
Preamble:
- ECB widely expected to cut by 25bp
- after the recent inflation slowdown
- We explore how a market positioned for a predictable outcome could react to a surprise hold or more dovish guidance. We retain a bias for higher front-end EUR rates, and further pressure on EUR/USD would probably need to come with some defensive pre-election positioning.
