EURUSD 10 mins
The euro is down 14 pipis today to 1.0832 but bond yields throughout Europe are much lower today.
The main comments today came from the ECB’s Schnabel who said that rate hikes are ‘quite unlikely’ after a ‘remarkable’ fall in inflation.
“When the facts change, I change my mind. What do you do, sir?” Schnabel said in an interview. “The most recent inflation number has made a further rate increase rather unlikely.”
The market is now pricing in 142 bps in cuts in the year ahead, up from 130 previously.