ICYMI – ECB Chief Economist Lane locks in a June rate cut (but what’s to come later?)

European Central Bank Chief Economist Philip Lane spoke on Monday. Justin had all the details:

• ECB’s Lane: There is enough in what we see to start interest rate cuts

• More from Lane: We think inflation in coming months will bounce around current level

• ECB’s Lane: There is a risk to easing policy stance too quickly

With remarks like “Barring major surprises, at this point in time there is enough in what we see to remove the top level of restriction” its not too difficult to see EUR/USD come under pressure once markets become more fully convinced that there will be a series of cuts from the ECB before the Fed begins its cuts. I suspect that’s why these ECB officials are playing done the prospect of a string of rate cuts after the first in June. They ain’t fooling many of us though.

1.05 before 1.10? What say you in the comments?

This article was written by Eamonn Sheridan at www.forexlive.com.