EUR flows: EUR slips lower after ECB

No real surprises in the ECB decision or statement. They don’t commit to anything, but they do indicate that the disinflationary process is well on track, despite inflation still being high and wages rising at an elevated pace. But they also note downside surprise sin the economic data that have affected their inflation outlook. EUR/USD was initially little changed, but has now fallen back. The market will want to hear what Lagarde has to say at the press conference, but in the absence of news we would still see mild downside pressure on EUR/USD, although there should be support above 1.08.