Euro lower on the headline

  • Headline inflation likely to decrease in the coming months, mostly due to oil

  • Measures of underlying inflation remain generally muted but domestic pressures strengthening

  • Underlying inflation to increase in medium term

  • Blames softer external demand and trade for softer growth outlook

  • Governments need to rebuild fiscal buffers

The euro is lower on the tilt downward in the balance of risks. This sounds like it's setting up for a push-out in forward guidance (through the summer) in the next meeting or two.

Here's the full quote:

"The balance of risks [to the growth outlook] is moving to the downside owing to the persistence of uncertainties related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets and financial market volatility."