-Executive Board member Benoit Coeure
The most traded currency pair was trading around 1.3560 level on Monday, refusing to penetrate a crucial level of 1.35. We continue receiving comments from the central bank's officials, with some trying to persuade markets there will be no more action, while other believe the ECB has done too little to boost growth and inflation. This week Executive Board member Benoit Coeure claimed that the latest package will be enough to boost the recovery, saying there is no need to kick off an asset-buying programme. According to Coeure, the central bank has already created a "growth-friendly environment" that will contribute to further pickup in growth.
Nonetheless, the economy continue sending worrying signs, with the latest report from the Eurostat showing the headline inflation measure plunged to 0.5% in May on an annual and seasonally adjusted basis. The reading was lower than initially was expected, as previous reports showed a 0.7% growth. Markets were betting on a 0.6% hike. That brings the inflation to the lowest levels seen in November 2009 and bolsters the case the ECB was right to act in June, because otherwise, it could be too late. With the inflation indicators remaining significantly below the 2% target and under the 1% mark since November 2013, it can be more difficult for consumers, governments and companies to reduce their debt levels, a problem, which is particularly painful in Southern Europe.
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