In an interview with the German weekly Frankfurter Allgemeine Sonntagszeitung (FAS) on Saturday, the European Central Bank (ECB) Governing Council member Jens Weidmann shot down heightened expectations of an economic stimulus.
Key Quotes (via Reuters):
Currently sees no need for a major economic stimulus programme.
Remains cautious on government bonds because they risk blurring the line between monetary and fiscal policy.
It is still not right to fundamentally question the criteria for bond purchases.
Friday’s rally in the shared currency is likely to gain extra impetus on Weidmann’s comments on Monday. EUR/USD rallied hard above the 1.11 handle after the US dollar slumped broadly amid US-China trade war and yield curve inversion, courtesy the US President Trump’s social media barrage.