EUR appears vulnerable and ECB rate expectations have softened - Scotiabank

Analysts at Scotiabank note that EUR appears vulnerable as it softens to the lower bound its recent mid-1.15/lower-1.16 range. 

Key Quotes:

"The euro area CPI figures were in line with expectations, with a 2.2% y/y print on headline and 0.9% y/y on core."

"Comments from ECB Chief Economist and GC member Praet were dovish however, highlighting the risks posed by demographics and their implications for monetary policy."

"ECB rate expectations have softened in response to the comments and German yields are down."

"EU leaders are in Brussels ahead of tomorrow’s summit. PM May is scheduled to meet with Council President Tusk and the 27 leaders ahead of a dinner later tonight."