Luxembourg’s ECB representative Mersch says that staff forecasts for economic growth would be higher if they were done today and that new information supports the view that the eurozone economy is stabilizing. The probability of deflation is near zero, he says.
We continue to monitor exchange rates closely and will cooperate as appropriate. The is no reason not to think the US is committed to a strong dollar, he says, in an interview with our friends at Market News International.
EUR/GBP is making a nice comeback, helping carry EUR/USD back into the 1.4930s. Barriers remain the focus, up at 1.5000 and 1.5050.
