ECB's Villeroy

Earlier ECB's Villeroy was on the wires saying:

  • any hypothesis of a reduction of purchases partly for Q3 or the following quarters is purely speculative
  • net purchase volume will be freely determined until at least March 2022.
  • Our monetary policy can be patient as the euro area inflation as well below other jurisdictions.
  • The ECB still has ample time to judge and decide on post PEPP moves, well beyond our June meeting
  • Based on our experience with the PEPP, we could move towards some additional flexibilities in terms of allocation and /or volume

Comments are a bit more dovish, at least for those who are looking for and end of stimulus. The EURUSD did dipped down toward the key support area near 1.2242, but have found dip buyers. The price currently trades at 1.2253