Markets expect 10bp rate cut by ECB

The ECB's monetary policy accounts are likely to be released today. It will contain a summary of the ECB's Executive Council's discussions at the last meeting. 

ECB President Mario Draghi highlighted in last week that for any further measures, the changes to the QE programme would be given tough priority. The rate market is expecting a 10bp rate cut in December, notes Commerzbank. It would be interesting to watch the council members' intention towards a rate cut. 

"An increase of the QE volume, ideally in combination with an open end to the asset purchases, would create the highest degree of uncertainty on the FX market and put most pressure on the euro. It would always remain unclear for the FX market by how many billions the ECB can further increase the purchases and how long it will stick with the programme", argues Commerzbank.