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ECB conference offers few surprises
Yesterday’s European Central Bank (ECB) press conference was the most interesting we have seen in years. Unfortunately, this was due solely to the young protestor who stormed the stage and threw confetti around before being carted off. On the more mundane matters, interest rates remained unchanged and the general consensus of letting existing policies run was very much the mood.
Never too far away from the sentiment was the Greek finance minister’s latest escapades. Yanis Varoufakis is currently over in the US talking to both Barak Obama and also lawyers specialising in sovereign debt restructuring. The debate around the trading floors is currently revolving around what chance there is of Greece defaulting. This might not be a foregone conclusion, but nor can we afford to dismiss it out of hand.
Any bounce seen in EUR/USD continues to be viewed as a selling opportunity, and institutions are still targeting sub-parity levels over the next six months.