Sasha Singh
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Will the ECB Really Decrease the Deposit Rate?

Awaiting commentary by European Central Bank (ECB) Mario Draghi,  it was a surprise when ECB Board Memeber Benoit Coeure said that the ECB was very seriously considering a negative deposit rate.  The deposit rate is the rate at which the banks keep their surplus funds with the central bank. 

Currently the rate is 0%. Soon after his comments, the  EUR slid against USD to the support level at 1.3561. EUR's losses lifted the USD and the Dollar Index from lows of 80.44. 

The USD also strengthened from Yellen’s comments on Fed winding down its stimulus.