The euro is down 70 pips today to 0.9942 and some are eyeing a move from the ECB to allow national central banks to lend out up to 250 billion in bonds against cash (from 150 billion).
I don't think it's a meaningful move but collateral issues are worth watching. The ECB has bought up huge parts of the bond market and firms often post sovereign bonds as collateral in trades. It's simply become difficult to find bonds; though that may also indicate that firms don't want to hold duration with the ECB hiking.
"This is a precautionary measure to ease collateral scarcity and support market functioning around the year-end," said the ECB's Schnable in the announcement.
On the technical side, the euro could be forming a double top here.
EURUSD daily
