Bloomberg is now reporting that ECB sources see a growing concensus of an ECB hike of 25 basis point in the 3Q.

Lagarde said that the rate launch would not start until the APP purchases were completed (which was to be sometime in the 3Q). She said that rate hikes will commence sometime after the end of APP purchases. If that would occur toward the beginning of the third quarter, a rate hike in the third quarter is absolutely possible. The market had price down to hikes by the end of the year.

The EURUSD sellers/bears have survived the run to the upside. The peak on the "sources" comments reached 1.0816, but has reversed back below the low from March 7 and yesterday at 1.0805 and 1.0808 respectively. The price low from Tuesday reached 1.0820 and the spike high stalled ahead of that level. The current price trades at 1.0791.

EURUSD tries to extend above recent lows but stalls rise