Like Trichet before him, Buba’s Weber says that the ECB still has room to cut rates further. Looking ahead, he says risks to the euro area should become more balanced from now on. Like any good Bundesbanker, he is worried that expansionary monetary policy is a breeding ground for inflation and stresses that the ECB should have an exit strategy at the first sign of financial recovery.
EUR/USD is consolidating loses as technical selling and improved dollar sentiment both impact the market.
