We expect a hike of 25 basis points and probably 50 basis pints. Any smaller rate hike or no rate hike at all will cause a big sell-off of the euro on all cross rates.

We expect a hike of 25 basis points and probably 50 basis pints, ... Any smaller rate hike or no rate hike at all will cause a big sell-off of the euro on all cross rates.

It strikes us both as brave and foolish to look for an improbable rate hike at this particular meeting.

The view is that the market could withstand a 25 basis point rate hike.

For now the rate hike will have mostly a psychological impact on the market. Investors will probably use this as a reason to push prices down before re-entering the market at lower levels.

I think the markets expect just about any outcome, though I don't think an ECB or a Swedish rate hike would be seen as a surprise. However, a U.K. hike would be a surprise, given what sterling has done since the last rise.