ECB executive board member Gonzalez-Paramo says that the ECB’s monetary stance can be normalized through rates or removal of support measures or both. All will depend on the circumstances at the time, he says.ECB speakers continue to amplify this point, one that was made at length by Trichet at least week’s press conference.
Letting extraordinary measures lapse should not be taken as a sign of imminent interest rate changes, he says.
The Fed has been letting programs lapse for months, so it stands to reason that the ECB will do the same.
EUR/USD trades at 1.4970 in choppy trade. Support is at 1.4950; resistance at 1.5020.
