Seels like the ECB is treating the meltdown of European markets this spring as a tempest in a teapot and if looking ahead to a recoverying economy going forward. Staff raised its forecasts for growth and inflation but the Council announced that it will keep weak banks on life support for some months to come, at a minimum.
The market seems to like the combination and has pushed EUR/USD up toward offers in the 1.2840/50 area.
