Bundesbank President and renowned inflation hawk Axel Weber is on the tape and he’s not sounding quite as optimistic as his colleague Ewald Nowotny earlier. He says that he sees no deflation risk, but low inflation in the next two years and he expects negative inflation rates in Germany in the summer months. He says that the IMF view on the Euro-economy was realistic and that the Bundesbank would change their projections downward. I think he sums it up nicely by saying that there are signs of hope in Germany, especially the recent improvement in the IFO.
Eur/Usd has edged of its highs after these comments as we await the New home sales data.
