Lagarde has been all over the media this week and the message from all ECB members this week is that disinflation is unfolding more quickly than anticipated. The market is pricing is pricing in a 15% chance of a 50 bps cut in December, which is down from 25% early in the week.
Risks to growth are tilted to the downside
This article was written by Adam Button at www.forexlive.com.
