I’ve just seen the padded out story to the Bundesbank headlines we got earlier. The market has reacted on the Bundesbank talking about the ECB forward guidance on rates.
“This is not an unconditional commitment and does not mark a change in the ECB’s monetary policy strategy,” the Bundesbank said. The guidance did not exclude a rate hike if inflationary pressure turned out to be stronger than currently expected.
Market sees the Bundesbank talking about rate increases and off it goes.
Maybe it should also have read this which came before the quote above.
Over the next few months, the rate of consumer price inflation is likely to ease somewhat,” the Bundesbank said.
It’s nice to be able to pick and choose your headlines to trade on isn’t it?
EUR/USD tops out at 1.3375, Cable at 1.5673, USD/JPY at 97.98.
The dollar falls against the Swissy but rises against the Aussie. USD/CHF down to 0.9249. AUD/USD down to 0.9155. EUR/AUD puts on a cent to 1.4586 from 1.4485 in an hour.
