ECB will keep rates low for a long time, but didn’t we already know that?
Looking at markets’ reaction after the ECB meeting, the new forward guidance is a success: the euro is slightly weaker vs the USD (around 1.1770) and…
The inflationary threat continues to take center stage, particularly in the US and probably for some time to come. Bond yields edged up and equities lost some ground yesterday, although European markets are up this morning. The USD weakened further, the EUR/USD pair now nearing 1.22, but overall the market moves should remain rather moderate ahead of the release of the Fed minutes tomorrow. The Japanese Q1 GDP figures were a bit worse than expected, as activity posted a 1.3% qoq contraction in Q1.
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