European Central Bank (ECB) Governing Council member, Ewald Nowotny, was on wires, via Reuters, stating that central bank will probably first review its policy stance in June but stop short of any decision on winding down its huge economic stimulus program.
Key headlines:
• ECB certainly won't discuss tapering in March
• Do not expect the ECB to decide on the future of QE until after the summer
• We will discuss policy in June but there won't be a tapering decision (there's a can kick for you)
• Tapering would come first, followed by rate changes but only at a later point
• ECB focuses on headline inflation and not the core
• Talk of Italy and France leaving the Eurozone is absurd and would be economic suicide
• A strong dollar helps Europe
• Believes that Trump will hurt the US in the medium term
• Ultra hard Brexit could be chaotic for the UK economy
• Brexit could cause significantly bigger problems but there's been no negative effects so far
His comments attracted some renewed selling pressure around the shared currency, with the EUR/USD pair tumbling below last week's low support near 1.0660 region to a 6-day low level of 1.0630 ahead of the preliminary release of German CPI for the month of Jan.
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