Analysts at TD Securities now expect the ECB to announce limited stimulus measures targeting liquidity and tightened financial conditions next week, followed by a 10bps cut to the deposit rate in Q2 2020. Key quotes: “Micro EUR liquidity measures which are fundamentally more effective tools to address the virus concern, could come as a disappointment for markets. This is already visible in today’s rate price action. Nonetheless, the enhanced liquidity measures should come as a support for the credits spreads and vulnerable sectors. From a tactical perspective, we enter 5y swap spread tighteners at 38bps targeting 30bps and stop of 42bps.” “The EUR has rallied sharply in recent days, but we think this mostly reflects short-covering driven by risk aversion rather than a positive reassessment of the region’s fundamentals. Looking forward, we expect EURUSD to remain highly reactive to how policymakers eventually respond from here. The near-term outlook remains highly uncertain as there are many moving parts in the mix. Our base case argues for a bit more upside potential, but much depends on the precise policy mix and its sequencing. Further gains will depend, however, on a significant upward repricing of global growth prospects. In the absence of that, intensified risk aversion could see spot to fresh lows for the cycle.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD stays supported by the 200-day SMA around 1.1100 FX Street 3 years Analysts at TD Securities now expect the ECB to announce limited stimulus measures targeting liquidity and tightened financial conditions next week, followed by a 10bps cut to the deposit rate in Q2 2020. Key quotes: “Micro EUR liquidity measures which are fundamentally more effective tools to address the virus concern, could come as a disappointment for markets. This is already visible in today's rate price action. Nonetheless, the enhanced liquidity measures should come as a support for the credits spreads and vulnerable sectors. From a tactical perspective, we enter 5y swap spread tighteners at 38bps targeting 30bps and stop of… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.