ECB’s Coeure: policy will remain more accommodative for longer

During a scheduled speech at a workshop in Frankfurt, Member of the ECB's Executive Board, Benoît Coeure was noted saying that persistent exogenous shocks to FX can cause unwarranted tightening of financial conditions with undesirable consequences for inflation. 

He further added that policy-relevant horizon likely to be longer given persistence of subdued inflationary pressures and compared with past demand shocks, policy will remain more accommodative for longer.

Additional quotes:

   •  Euro strength may also have less impact on growth than after the great financial crisis
   •  Recent volatility in FX rate represents a source of uncertainty, which requires monitoring

The EUR/USD pair refreshed session lows, below the key 1.20 psychological mark Immediately after the comments.