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Weidmann Arguing Against Rate Cuts!

David Wienke

ECB's Draghi, Weidmann, Coeure and Asmussen were reported to have argued against a rate cut yesterday according to the financial press.  It was reported that other members may have been ready to support an immediate rate cut, but the German members Weidmann and Asmussen were joined by Bank of France's Coeure and ECB President Draghi against a rate cut in December. This helped to rally EURUSD but it was unable to get to positive territory on the day.  Technically some of the daily momentum indicators are turning negative, but short term and ahead of the weekend we would likely see a short covering rally, especially  if EURUSD could trade above the first key fibonacci level of 12973 (initial pivot pt resistance) with s/t swing potential above this to 13032 (.618*)