Weidmann is leaving his post for personal reasons at the end of the year


The ECBs Weidmann (German governor) is on the wires saying:

  • We should not ignore the risk of too high inflation
  • Must remain watchful of inflation
  • Monetary policy should not commit to its current very expansionary stance for too long
  • If required to safeguard price stability monetary policy as a whole will have to be normalized
  • Inflation rates will probably take longer than previously projected to recede
  • Pandemic could have eight market impact on inflation setting that could mean that inflation won't fall below target in the medium-term
  • central banks will, under pressure from governments to keep policy loose for longer than needed

The EURUSD has fallen to a fresh 16 month low. It is now down 1% on the day.