• Increase in long term yields, all things being equal, tightens financial conditions.
• France needs to bring back deficit to 3%.

Villeroy has turned into a dove late last year and hasn’t had a change of heart yet. He recently said that Trump’s tariffs would have limited impact on the Eurozone inflation but could reduce GDP by 0.3% over the course of the year, so he’s leaning towards easing rather than pausing in terms of monetary policy.

This article was written by Giuseppe Dellamotta at www.forexlive.com.