🏦UBS Review On ECB

An ECB Disappointment? Towards the end of the ECB's press conference, European arates started to rally and the euro weakened a bit. It's hard to see a reason for that, unless ECB President Lagarde's reference to not discussing phasing out PEPP came as a disappointment to those who had expected an announcement today. It's not surprising at all the governing council members didn't (formally) discuss phasing out PEPP (though they surely did over dinner). That will be for the June 10 meeting where it seems likely the members will scale back PEPP even if they won't formally call it tapering.