ECB cut could bring back the carry
Euro may become funding currency of choice
The euro could be set to become a funding currency of choice for carry trades in the wake of the European Central Bank's (ECB) decision to implement negative deposit rates and to further lower key rates from historic lows, strategists say.
On Thursday, ECB governor Mario Draghi cut interest rates to 0.15% from 0.25% previously and imposed a –0.1% negative rate on bank deposits, meaning banks have to pay the ECB to park cash overnight rather than earning interest on the deposits.
One likely
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