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Analysts at Danske Bank note that the markets reacted yesterday on the back of more hawkish ECB comments from President Draghi.  

Key Quotes

“Draghi said that the ECB sees ‘  a relatively vigorous pick-up in underlying inflation’  , which is really hawkish from Draghi, as he never chooses words by accident.”

“On the ECB’s forward guidance, he said that ‘  first, the ‘through the summer of 2019′ formulation is a calendar-based element, which refers to when we anticipate conditions that might warrant a first rate increase’which means the ECB meeting in September next year will definitely be a live meeting (our base case is that the first hike arrives in December 2019). Markets sent European yields and EUR/USD higher on the back of his comments.”