ECB managing board member Gonzales-Paramo says that inflation in the eurozone will be close to zero this year and could rise to over 1% next year. He warns European countries to get their fiscal houses in order or they will be punched by the capital markets.
EUR/USD is consolidating losses after holding support in the low 1.4850s. Asian central banks were buyers on weakness overnight; short-term specs may buy around present levels with tight stops, leaning on the big boys for support.