Villeroy adds:
- We need to take out insurance against a hard landing by starting to cut rates.
- Whether in April or June, the exact date of first rate cut is not or existentially important.
- First rate cut should come in spring and come independently of the US Federal Reserve timeframe.
- We will likely start with a moderate cut after that we don't have to cut at each meeting though we should keep that option..
The EURUSD is softening a bit and trades at 1.0788. That takes the prize below the swing area between 1.0795 and 1.08036 (see yellow area on the chart below).
