ECB's Centeno says should start interest rate cuts sooner rather than later

<ul><li>Inflation is decreasing in a sustained manner</li><li>Almost all factors that drove prices up have dissipated</li><li>Should start cutting rates sooner rather than later, but avoid abrupt moves</li><li>No need to wait for wages data in May to make rate decisions</li><li>There are no visible second-round effects of wage hikes</li></ul><p>This will just serve to feed market hopes of a rate cut in April, which is ~98% priced in currently. The euro is struggling a little on the session, with EUR/CHF in particular down 0.4% to a two-week low of 0.9325 now.</p>

This article was written by Justin Low at www.forexlive.com.