EUR supported by Nowotny’s comments – Danske Bank

Analysts at Danske Bank explain that yesterday, we saw a quite volatile trading session in the afternoon and while there were no data releases driving the market, comments from Austrian central bank governor Ewald Nowotny sent rates higher and EUR stronger.

Key Quotes

“Nowotny commented in a Reuters interview that in his view the ECB could hike the deposit rate before moving the main interest rate . He also commented on a first rate hike being 20bp . Unprecedented, an ECB spokesperson stressed that the comments were Nowotny's own view. ECB spokespeople never comment on views shared by the individual governing council members, so that in itself was striking.”