A rate hike is fully baked into the cake, and given recent data further hikes might be less automatic. Traders will be closely attuned to comments from M. Trichet on his level of vigilance.
One talking point making the rounds today is that the ECB will set up a new liquidity facility for addicted banks. Perhaps they will have more to say on the creditworthiness of troubled sovereigns and what will and will not be eligible for use as collateral.
