ECB managing board member board member Gonzalez-Paramo is on the wires saying if inflation expectations fall, the ECB has to cut rates. He goes on to say that monetary policy can keep working (presumable with rates near zero) with quantitative easing. If inflation expectations are anchored, non-standard measures can work. Fiscal stimulus may be less effective, he implies, saying we have to look at whether it is effective.
Despite an ececutive of the ECB talking rates cuts and quantitative ease, EUR/USD holds near session highs, now at 1.2920. US equities markets are adding to earlier strength, now up 2.65%. Keep an eye on 92.25/30. Stops are eyed on a break above that level. 92.90 is next resistance if cleared.