Having surged after The Fed hiked rates ‘dovishly’, EURUSD is surging- bouncing off 1.07 the figure – after ECB Council member Nowotny told Handelsblatt that a “rate increase may be on the way.”
The European Central Bank (ECB) could be heading away from loose monetary policy in a different manner than the U.S. Federal Reserve, Ewald Nowotny, the Austrian ECB council member, told Handelsblatt in an exclusive interview.
The American model was to finish bond purchases first, but this model might not transfer well to Europe, said Mr. Nowotny, who also serves as the Austrian National Bank governor. All interest rates also wouldn’t have to be increased simultaneously nor to the same extent, he added.
“The ECB could also raise the deposit rate earlier than the prime rate,” Mr. Nowotny said.
And EURUSD’s early weakness is erased…
Bund Futures are under pressure on the news (as the TSY-Bund spread narrows).
via http://ift.tt/2mTUfXe Tyler Durden