• LTRO’s should continue to support the eurozone
  • Economy to recover gradually in 2012
  • ECB staff cut 2012 growth estimate to -0.5% to +0.3%
  • December forecast was -0.4% to +1.0%
  • 2.1% to 2.7% inflation in 2012 because of energy and taxes

EUR/USD up to a session high of 1.3271 on the hawkish inflation talk. Lower growth, higher inflation — what’s not to like?