Comments by ECB member Klaas Knot
- Rate hike may still come sooner or later than guided
- Central bank is very comfortable with wording of forward guidance at the moment
- But that is just an expectation
Not too surprising to see the comments out of Knot here as he is one of the more hawkish members on the Governing Council. For some context, he has been calling for the end of QE since the start of the year.
But given the ECB's recent language, they will stick to the "through the summer of 2019" rhetoric until there is a need to change it. And until then, the euro and money markets have so far got that expectations well managed.
EUR/USD continues to be weighed lower on the day by Italy's budget worries, softer risk sentiment and a weaker pound as well. The pair now trades near the lows at 1.1468. EUR/GBP is up on the day as the pound slips to 0.8800 while EUR/JPY also trades at the lows at 130.00.
