ECB: Disappointing end to the press conference as two key messages emerged: 1) economic assessment is clearly more dovish and rate hikes seems of much lower likelihood after the meeting today, and 2) the ECB may have restarted the SMP for Portugal and Ireland but the decision was not unanimous, which in practice most likely means the Bundesbank was opposed. If that is indeed the case then buying Spain and Italy will be very difficult,if not impossible. In this environment, the euro is likely to remain under pressure, including against the swiss franc. The SNB will eventually come in and announce further measures, but highly unlikely before next week at the earliest.
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