Earlier this morning ECB’s Coeure says QE to be front-loaded ahead of “summer lull”. In his comment, he said he doesn’t see the recent selloff in German bunds as a concern as well as sell off in other sovereign bonds, he said it is just a reflection of market correction. Markets responded to this comments and there was a bit of sell off in Euro across board.
Some other economic data which was released earlier in the morning also shows that UK economy is in deflation after CPI figure shows negative (-0.1%), this is in line with the Bank of England’s forecast of a potential low inflation figures. In the Eurozone, the CPI figures shows 0.0% which is in line with forecast. The German ZEW economic sentiment also came out below expectation at 41.9%.