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13 Mar 2014
Flash: ECB claim to not be as hawkish as market interpreted - Danske Bank
FXStreet (Barcelona) - Arne Lohmann Rasmussen, Chief Analyst at Danske Bank notes that yesterday ECB members continued to say that the message from last week’s meeting was not as hawkish as interpreted by the market.
Key Quotes
“Chief ECB Economist, Peter Praet, said that the ECB was in fact reinforcing its forward guidance, by referring to the significant economic slack in the eurozone.”
“There was one interesting comment though, from Spanish Governor Linde, who suggested that the ECB may have to take new measures in the coming months ahead of the 3Y LTRO expirations in 2015.”
“But nevertheless the market has certainly lost faith in the ECB, which is probably most clearly reflected in EUR/USD, which is now trading at 139.40 – the highest level since October 2011.”
Key Quotes
“Chief ECB Economist, Peter Praet, said that the ECB was in fact reinforcing its forward guidance, by referring to the significant economic slack in the eurozone.”
“There was one interesting comment though, from Spanish Governor Linde, who suggested that the ECB may have to take new measures in the coming months ahead of the 3Y LTRO expirations in 2015.”
“But nevertheless the market has certainly lost faith in the ECB, which is probably most clearly reflected in EUR/USD, which is now trading at 139.40 – the highest level since October 2011.”