ECB remained dovish - Rabobank

Philip Marey, Senior US Strategist at Rabobank, suggests that the euro took a step back yesterday against the US dollar, the yen and even the British pound as the ECB remained dovish.

Key Quotes

“The key message by Mr. Draghi yesterday was that the recent GDP numbers were encouraging and that the balance of risks - while still tilted to the downside - has improved due to measures taken and those still in the pipeline. However, the ECB would act if it were to see an unwarranted tightening of financial conditions, or if it were to see persistence of 2nd round effects in inflation.

Mr. Draghi stressed that the full impact of its previous measures as well as upcoming measures was still to be assessed. This confirms our view that the ECB is currently in a wait-and-see mode, whilst retaining a dovish stance.”