BREAKING: EUR sees little reaction to ECB Minutes

Minutes from the latest  ECB meeting have just been released, but did not trigger any major moves on markets. 

Key takeaways:

•  ECB now needed to show equal determination when inflation was above the target, countering far too high inflation and preventing it from becoming entrenched, irrespective of a deteriorating outlook.These developments raised the prospect of inflation becoming entrenched.

• The view was widely shared that the inflation outlook continued to worsen.

• A decline in economic activity would not be sufficient to significantly reduce inflation.

• Wage growth was accelerating, it could still be considered moderate.

• GC should continue normalizing and tightening monetary policy, although it might want to pause if there was an extended and deep recession.

• A 75 basis points hike was supported by a very large majority.

EURUSD barely reacted to ECB Minutes release. The main currency pair is currently testing a short-term support zone in the 1.0400 area. Source: xStation