ECB's Coeure with scheduled speech 31 Jan
Yesterday's German data notwithstanding ofc
EZ CPI flash out at the top of the hour. Is he giving us a heads up that it might follow a similar pattern in short term? We'll find out soon enough.
- expects key ECB interest rates to remain at present levels for extended period
One from the hymn sheet so ntg new in that comment
EURUSD steady around 1.2450 into the data but EURGBP higher at 0.8808 dragging GBPUSD down through 1.4150
Coeure concludes:
Current financial market conditions have given rise to much comment. Concerns have been voiced that low long-term yields are a precursor to economic slowdown or recession. These concerns, however, are inconsistent with the marked rise in expected future short-term rates in some jurisdictions and the parallel increase in stock prices in many others. We currently see no concrete evidence of market uncertainty about the sustainability of the current economic expansion.
We do see evidence, however, suggesting that market participants globally consider upside risks to future inflation to be limited at present. While this might be a natural corollary of the protracted period of low inflation, it may also be a matter of concern if it indicates complacency over future adjustments.
However, we see no such risks in the euro area today. Accordingly, an ample degree of monetary stimulus remains necessary for underlying inflation pressures to continue to build up, and we expect the ECB's key interest rates to remain at their present levels for an extended period of time, and well past the horizon of our net asset purchases
Full speech entitled " What yield curves are telling us" here
