Minutes from the ECB March meeting have just been released. Below we present key takeaways:
- Policymakers noticed that rise in bond yields occurred mostly on account of higher expected inflation and a better outlook for the global economy therefore the Governing Council needed to avoid giving the impression of being overly focused on sovereign yields or reacting mechanically to a set of indicators of financing conditions.
- ECB officials all agreed that PEPP purchase pace need to take into account assessment of current financing conditions and the inflation outlook
- ECB members agree that the total PEPP envelope should not be called into question in the current conditions and that the pace of purchases could be reduced in the future
- Officials agreed that the Governing Council would conduct a quarterly joint assessment of financing conditions and the inflation outlook to determine the pace of purchases necessary to maintain favorable financing conditions.
EURUSD bounced off the 1.1862 support after today's data releases and is heading towards resistance level at 1.1894. Source:xStation5