ECB announces new TLTRO amounts at 09.15 gmt
The details of the next TLTRO will be announced by the ECB shortly and it could give us an insight as to whether credit conditions are improving in the Eurozone
Expectations are ranging between €60-75bn. The last TLTRO saw a take up of €98bn as banks started finally feeding liquidity through to the economy. This one will come with a lower interest rate of 0.05% compared to the prior 0.15%, which might tempt a larger take up
Although the program has been overshadowed by QE, the ECB will be watching the numbers closely as they will want to see that businesses are starting to feel confident enough to borrow
A strong take up over the estimations could be positive for the euro but I don't envisage a big jump unless it's a massive beat. Conversely a lower take up might be viewed negatively but again is unlikely to affect the euro that much
QE is the main game in town but the TLTRO's give us a little glimpse into the state of the economy from the credit side and that's an important factor
