EUR/USD: ECB's Garganas Says Policy Still Very Accommodative

The ECB's Garganas says that monetary policy is still very accommodative and that inflation may reach 2% or more in 2007. Growth should be near or likely above potential in 2007 and that the ECB will act in a timely, prompt manner if needed. Fed speakers see inflation coming lower but remain focused on the chance it could accelerate. ECB speakers remain uniformly hawkish. EUR/USD is steady at 1.2943 amid talk of quasi-central bank bids below the 1.2940 level.