With the ECB signaling there could be more policy easing in the future, the market reacted by breaking the Euro currency future’s win streak and sending prices lower by 0.70%. Use an options spread to set up a trade with a great risk vs. reward ratio.
The DEC13 Euro futures have tumbled today on news that the ECB is weighing a negative deposit rate to help boost the economy. Policy makers would reduce the rate for commercial lenders who park excess cash at the ECB to minus 0.1% from zero.
European Central Bank President Mario Draghi said he’s ready to take any necessary measures to keep money-market rates in check as he tries to steer Europe’s banks through the early stages of an economic recovery.