- Inflation pressures are diminishing
- Expects inflation in-line with price stability medium term
- Level of uncertainty very high
- Will continue to monitor very closely all developments
- Very negative growth in Q4, persisting over coming quarters
- Risks to growth clearly on the downside
EUR/USD has fallen back to 1.2760 amid expectations that a March cut from the ECB is a slam dunk.
1.2700 barrier optiosn could be targeted if downside momentum is sustained. A quick dip to trigger the option followed by a rebound is the most likely scenario. Beware of a bear-trap.