EUR/USD continues to trade around 1.3150-55 following headlines on Reuters news that Yves Mersch, ECB council member, and president of the Central Bank of Luxemburg who stated that the EU economy is "Edging toward a state where accommodative policy is no longer needed".
He is also looking for possible upward revisions in the ECB's GDP projection, and warned against wage settlements above 4% stating they would be inflationary. He emphasized that the monetary aggregates will continue to need monitoring because "liquidity is ample by any measure". These generally hawkish statements have already been prices in according to spot traders, and once again have been filed under the category "same old, same old".
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