FXStreet (Delhi) – Richard Kelly, Head of Global Strategy at TD Securities, notes that sources suggest ECB is discussing 20 options for its forthcoming meet on Thursday, including the potential for a split deposit rate based on the amount of deposits being placed at the ECB. Key Quotes “This would seem to increase the lower bound potential for short-end Euro rates and reinforces our ongoing expectation that the ECB will be more aggressive than expected.” “It is always important to be careful with ECB “sources” stories in the run up to a Governing Council meeting. But for those who have doubted that this week’s decision would just be a run of the mill easing discussion or wasn’t biased to do more than expected as we have been arguing. There is also a large issue in extrapolating implications for markets from what is very limited background, but overall, outlining measures that could include a split-level deposit rate would seem to argue that the lower bound for Eonia and the short end of the European term structure is lower than many assumed. We have been arguing for a 20bps cut to the deposit rate versus a market largely biased to less, so this will let our expectation now more fully price itself into markets.” For more information, read our latest forex news.