Our friends at Market News International have just put out a piece citing sources within the ECB. The piece says the ECB is not sure if the present shallow recovery will take hold and that they are preparing a further round of unconventional monetary policy measures should the rebound falter.
Sounds prudent, but it should also sound the alarm bells that the ECB does not think an economic recovery is a done deal. “Never say never” seems to be the approach, at least in private.
Interestingly, one official said unemployment is worse than the official statistics would suggest and that there could be a further consumer crunch.
EUR/USD is little bothered by the possibility of an easier ECB, rebounding to 1.4132 as US equities open flat.