It's no surprise to see capital markets beginning to trade tight ahead of this weeks main events – the ECB's supposedly telegraphed solution to their low inflation problem and the US's grandfather of economic releases, non-farm payrolls. A move is expected by the ECB tomorrow, but how aggressive is anyone's guess. Euro-policy makers have a decent track record in disappointing the market, making it a market prerequisite to consistently price that as well. No matter what, Euro-policy makers are required to be firm, and must walk away giving the market a perception that they are not done, that any interest-rate cut this ... (full story)