After a recent flirtation with more upbeat rhetoric, "the dovishness of ECB president, Mario Draghi and company comes as a surprise," says Timothy Graf, head of macro strategy at State Street Global Markets. Below-target inflation always meant tight policy was a long way off, but some hint of extraordinary easing measures coming to an end was a reasonable expectation given the strong tone to eurozone data, Mr. Graf says. European markets should like the news and we look for the recent underperformance of peripheral bonds to reverse. The trade-weighted euro also has ample room to test lower and retrace a portion of its 5 percent gain over the last quarter, he adds.

Source: Wall Street Journal July 20, 2017 11:58 UTC