ECB: comes with a cautious confident undertone; EUR is an unattractive long- Scotiabank

Analysts at Scotiabank explained that the ECB’s monthly bulletin noted that the Eurozone economy was proceeding along a “solid and broad-based growth path” but that uncertainties, in the form of protectionism primarily, remain prominent. 

Key Quotes:

"The cautiously confident undertone reflects recent comments from ECB policymakers that steady growth will drive inflation towards convergence with their inflation target even as it proceeds with a gradual winding down of asset purchases."

"Short-term rate differentials remain widely in favour of the USD and while spreads have not provided much in the way of obvious, additional support for the USD, the yield gap makes the EUR an unattractive long for investors amid idle range-trading."