ECB’s Visco: Underlying inflation doesn't show any signs of sustained rise

In an interview with La Stampa on Tuesday, ECB governing council member and Bank of Italy head Ignazio Visco noted that the accommodative policy stance is here to stay as inflation doesn’t seem to show any signs of sustained increase.

Key Headlines:

Underlying inflation doesn't show any signs of sustained rise; easy monetary pol stance cannot be changed until conditions change

In the distressed banks government intervention is not excluded, but there are rules to be respected

Meanwhile, EUR/USD extends retreat from 1.0650 levels and now test daily lows struck just ahead of 5-DMA located at 1.0612.