2012.06.06 10:19:56 MARKET TALK: ECB Critical For Mkts -BNPP

0819 GMT [Dow Jones] ECB is critical for forex markets, says BNP Paribas. BNPP expects a 25bps cut based on the marked deterioration in the economic outlook and slumping credit growth. It does not expect another round of measures on SMP. If the ECB does hold rates, then BNPP expects the press conference "to signal chances of a cut by focusing on the weak activity data and the increased downside risks to growth." A surprise cut would likely hurt EUR, says BNPP, but it could support equity markets as a cut could bolster confidence BNPP notes. This would push EUR/AUD, EUR/CAD push lower, the bank adds. EUR/USD at 1.2517, EUR/AUD at 1.2682. (jessica.mead@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires June 06, 2012 04:19 ET (08:19 GMT)