I’m still cautious, following all data available.I’m worried about investment in the Euro Area.Strong Euro will bring more investors to Europe.Euro strength reflection of global developments.I’m in no rush to lower interest rates.A weak Q2 could raise the risk of too low inflation.The risk of inflation undershoot is greater than overshoot.
Centeno is a dove and he’s been focusing on slower growth for quite some time. He’s in no rush to lower rates but he still sounds like someone who would vote for a rate cut easily. As a reminder, the ECB is on pause at least until September as the central bank gather more information throughout the summer.
This article was written by Giuseppe Dellamotta at www.forexlive.com.