ECB's Rehn says that core inflation is still rather weak
Comments by ECB member Olli Rehn
- Accommodative policy is still needed
- Having room to manoeuvre around monetary policy is part of ECB's resilience
- Reasonable to assume unconventional policy tools are permanently in the toolbox
A slightly more dovish take on matters by Rehn here. EUR/USD has backed off the highs for the day now as the single currency is met with worries from Italy to start the day.
Italy-Germany 10-year bond yields spread has widened again to start the day to 307 bps (up by 11 bps) now. EUR/USD now sits at 1.1548 off the highs of 1.1572 earlier in the day. EUR/GBP holds near the highs though at 0.8744 while EUR/JPY is a little higher on the day at 129.63.