My Top Takeaways ECB Press Conference
Summary - EUR comes within 7 pips of 1.40 only to drop below 1.39 after Draghi says ECB could act in June. If they ease, it will most likely be a cut to the refi rate or a mildly negative deposit rateHere's everything you need to know about the key points made in the press conference
1. ECB Comfortable with Acting in June after Staff Forecasts are Released
2. Strengthening of Exchange rate in Context of Low inflation is "Serious Concern"
3. Concern over FX rate will have to addressed
4. Strong EUR caused by inflows
5. The era where the ECB never pre-commits ended "a long time ago"
6. Sees Downside Risks to Economic Outlook, cites Financial, Emerging Market and Geopolitical risks
7. Ready to act swiftly if needed. May consider unconventional measures. Sees rates at present or lower level if needed
8. Firmly reiterates Forward Guidance
9. The longer the period of low inflation, the longer the risk of de-anchoring expectations
10. Inflation risks broadly balanced, to rise gradually in 2015
11. Survey data consistent with continued moderate recovery. EZ unemployment stabilizing
12. Moderate recovery proceeding as expected. Prolonged period of low inflation, then prices to rise gradually after
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