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11 Mar 2014
Flash: ECB not happy with EUR strength - Danske Bank
FXStreet (Barcelona) - Allan von Mehren, Chief Analyst at Danske Bank notes that the ECB governing council member Christian Noyer yesterday said the ECB was not happy with the strength of the euro.
Key Quotes
“When the euro tends to strengthen, it creates additional downward pressure on the economy and inflation, which in both cases isn’t warranted. So we’re not happy at the moment”.”
“Nevertheless, the euro strength apparently wasn’t enough for ECB to act last week. Bundesbank president Sabine Lautenschlaeger reiterated last night in a WSJ interview that the ECB will act if necessary but that it saw no strong reason to act last week. She repeated that the ECB still has tools left such as cutting rates further, negative deposit rates and asset purchases.”
Key Quotes
“When the euro tends to strengthen, it creates additional downward pressure on the economy and inflation, which in both cases isn’t warranted. So we’re not happy at the moment”.”
“Nevertheless, the euro strength apparently wasn’t enough for ECB to act last week. Bundesbank president Sabine Lautenschlaeger reiterated last night in a WSJ interview that the ECB will act if necessary but that it saw no strong reason to act last week. She repeated that the ECB still has tools left such as cutting rates further, negative deposit rates and asset purchases.”