Ewald Nowotny comments via Die Presse

  • Additional public investment is needed
  • Helicopter money is out of the question for the ECB
  • Had the ECB not acted we would have tipped into deflation
  • ECB must fight the dangers of deflation
  • As soon as situation improves monetary and interest rate policies will change

I've swapped over the headline as this one is the big news. It's the first time an ECB member has said that ECB policy won't work, and that's something coming from Nowotny. The Euro has dipped because that's bad news.

EURUSD has dropped to 1.1336. It's not alone as USD is a tad firmer elsewhere too. That's still a pretty big comment from Nowotny and I'm surprised it's not done more damage.