Asked about the odds of a 50 bp cut in March, the ECB’s Gonzalez-Paramo said the markets analyse what they see. This essentially that the market has it right and the ECB sees the same things as the market. More interestingly, he says radical quantitative easing is not easy. Just there mere exercise of publicly discussion quantitative ease indicates the ECB is working overtime to set the stage for QE just in case they need to use it.
EUR/USD remain well bid, trading just below resistance at 1.2990. We change hands now at 1.2975. A break of 1.2990 targets 1.3065.