I’m not sure if this is news or not, but the ECB drained nearly EUR 130 bln in an overnight fine-tuning operation. I’m not sure if it is my imagination or not, but I can’t recall the ECB undertaking mundane day-to-day money market operations like this for quite some time. If nothing else, it could be a sign of return to normalcy in the money markets.
EUR/USD pushed up into the low 1.4830 on its most recent pop. Related markets are quite stable.
Update: Turns out today is the last day of the maintenance period (bank reserve requirements) and today’s move was purely technical with zero policy implications.
