Flash: Negative rates in Europe only if deflationary pressure persists - Societe Generale

FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, ECB speakers talk of negative deposit rates more aggressive easing will only happen if deflationary pressures increase.

Key Quotes

“The ECB party line is that current falling prices in some parts of the Euro Zone don't constitute deflation. That isn't how it feels in countries where wages are falling.”

“Still, The Euro won't fall sharply until either risk aversion picks up (not on the cards near-term) or shorter-term rates diverge.”