Forex Flash: ECB looks to make splash in May – UBS

FXstreet.com (Barcelona) - According to Research Analyst Gareth Berry at UBS, “The market will likely increase its pricing of an ECB rate cut in the run up to the May policy meeting – a weaker euro can also be expected, but for a credit- and funding- starved Eurozone, fears over further capital flight due to return erosion may turn out to be misplaced.”

Politics notwithstanding, a rate-cut, further attentiveness to growth policies (on a monetary and political level) and a weaker euro may prove to be the perfect mix to reinvigorate investor interest on a structural basis, and these longer-term value driven flows into European asset markets are exactly the type the Eurozone seeks.