Most economists surveyed by Reuters see a 50 bp cut in the refinancing rate to 1.00 next week with 50% forecasting a move to quantitative easing measures in the coming months.
While the ECB should probably adopt QE next week, given its incrementalist approach, they will probably wait until at least the May meeting.
EUR/USD is range trading after a nice bounce from key support at 1.3415. Stops are building in the 1.3410 region, it should surprise no one. 1.3520/30 is resistance on rebounds near-term; stops lie at 1.3535/40.
