Forex Flash: Market didn't priced in 30-40% chance of ECB rate cut – TD Securities

For the ECB meeting tomorrow, TD Securities analysts see a 30-40% chance of a refi rate cut, "which is not priced into the market" and the Central Bank is expected to lower the 2013 and 2014 GDP forecast, as well as the 2014 inflation forecast. "But one month of disappointing surveys for some members is not enough to yet dissuade optimists from the story of improvement, Italian election uncertainty is not a factor to rate cuts, and the depreciation in euro since the last meeting will leave that a less pressing concern", they wrote.