• ECB following inflation closely but sees no immediate need to act
  • ECB assumes recovery will reduce deflation risk
  • says there’s no sequencing to further ECB action. all possible steps to be considered
  • personal preference for unconventional measures is strengthening ABS market

EURUSD a tad firmer at 1.3714 on the “no immediate need to act” rider. EURJPY up to 141.50. EURGBP 0.8278