Higher than expected Euro inflation numbers last week should prevent, the departing Trichet from overseeing an ECB rate cut this morning. The market expects policy makers to extend the provision of the unlimited, fixed-rate funding timeframe into next year, providing a further six-month LTRO, with an outside possibility that a one-year LTRO is also announced. The futures odds are 50% for a rate cut. Despite the bumbling cohesive actions of policy makers since they took ‘real’ ownership of Euro sovereign concerns this week, if the ECB disappoints and leaves rates unchanged, markets are likely to increase their pricing ... (full story)