ECB Will Lend More Than Expected - 29.2.2012

The European Central Bank reported that it will allocate a record amount of three-year cash in longer term refinancing operations, which may potentially boost bond and equity markets. According to the figures of the central bank, 800 financial institutions will receive 529.53 billion euros for 1092 days, while economists predicted a 470 billion-euro package. The euro remained close to its 3-month high 1.3485 against the dollar, having lost only few points and without showing sharp moves. The Canadian and Australian dollars are showing more positive dynamics against the greenback today. The US commerce department reported today that real gross domestic product grew at an annual rate of 3.0% in the fourth quarter of 2011, according to its second estimate, following a 1.8% growth pace in the third quarter of 2011. The loonie climbed to the highest level since September 2011 (pair USD/CAD dropped to 0.9869), and the aussie rose to the highest since August 2011 – 1.0855.