26 May 2015
Too early for a hawkish ECB - BAML
FXStreet (Guatemala) - Ralf Preusser, analyst at Bank of America MErrill Lynch explained that it is far too early for the ECB to turn hawkish.
Key Quotes:
"If anything, the comments from Noyer, Mersch as well as Cœuré were on the dovish side. As we highlighted before, the risks to the ECB’s inflation forecasts remain to the downside."
"Uncertainty surrounding the expected bounce back in US data, coupled with declining corporate bond supply, could put downward pressure on UST yields, and would also be supportive for EUR bond markets."
"Greece remains a significant event risk given the precarious cash situation of the government."
Key Quotes:
"If anything, the comments from Noyer, Mersch as well as Cœuré were on the dovish side. As we highlighted before, the risks to the ECB’s inflation forecasts remain to the downside."
"Uncertainty surrounding the expected bounce back in US data, coupled with declining corporate bond supply, could put downward pressure on UST yields, and would also be supportive for EUR bond markets."
"Greece remains a significant event risk given the precarious cash situation of the government."