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Analysts at Danske Bank note that a range of ECB speakers were out yesterday asDraghi expressed belief in the eurozone recovery but also reiterated that the ECB has to be ‘patient, persistent, and prudent’ and thus that no hikes will be seen this side of the summer of 2019.

Key Quotes

“Separately, Benoit Coeure stressed that the current stance on monetary policy is working well. Ewald Nowotny noted that negative rates should not become permanent and hinted that the low-for-longer stance on rates and hence weaker-for-longer EUR are partly due to the US-led trade war via the negative growth consequences.”

“The trade dispute will most likely continue to linger as a market theme over the summer and we thus continue to see USD strength return near term.”