MARKET OUTLOOK - Markets are pricing in future ECB interest rate cuts very aggressively.

In a note, strategists at RBC Capital Markets stated that money markets are pricing in the European Central Bank's future rate cuts very aggressively. The strategists said, "We do not see a step larger than 25 basis points at one of the upcoming meetings and believe that the final rate will be higher than the current market pricing." According to LSEG data, money markets are currently pricing the final deposit rate expected after the ECB's pause at around 1.75%. However, RBC believes that the ECB will end rate cuts once it reaches a deposit rate of 2.25% in April. For today's meeting, RBC strategists expect a 25 basis point rate cut.