I’ve changed the headline as that news has pulled the rug out from the euro gains right now.
Won’t tire from arguing for structural reforms (They won’t tire from telling us about it either
)
ECB does not see deflation in EU
Prolonged low inflation could lead to negative spiral
ECB has lingering concerns over bank earnings
Risks to outlook for EU banks still elevated
That’s a potential warning ahead of the AQR and stress tests and could have the market starting to worry. We’ve been told on numerous occasions that we need not be worried about the upcoming tests. Hands up, if like me you’re ignoring those calls that all is well?
EUR/USD lost 10 pips on the comments falling to 1.3538
