Comments from ECB Vice-President Luis de Guindos are behind the latest move in the Euro with EURUSD now breaking above 1.0900. In an interview with Bloomberg, Mr. de Guindos said that the central bank sees neither stagflation nor a recession happening in the Euro Area, that inflation will decline this year but stay above 4% in Q4, and that the APP bond-buying program will end in Q3. Echoing remarks made yesterday by the governor of the Central Bank of Latvia, Martins Kazaks, Mr. de Guindos added that he sees no reason why the APP program should not be discontinued in July and that, theoretically, a rate hike in the same month is possible.
