ING Research discusses the reaction to today's ECB meeting and thinks that it sets a new milestone in terms of buying time.
"It is very hard to believe but according to ECB President Mario Draghi, the ECB did not discuss the monetary policy outlook at all. The most cautious version of buying time, avoiding new speculation and really saying nothing.
In our view, the next meeting in June, which will be held in Riga, should bring some guidance for the future path of QE. Given today’s caution and dovishness, anything but another extension beyond September would be a big surprise," ING argues.
Meanwhile, ING argues that USD recent gains are unlikely to be sustainable.
"Bigger US budget and current account deficits mean that the textbook case for a weaker dollar remains in place. We just need something to flip this weak USD switch back on.," ING adds.