ECB Members Say Further Easing Is Far From Certain

The euro climbed on Tuesday after comments from European Central Bank members reduced expectations of further stimulus in May. The common currency traded at $1.3741 at 4:45 GMT as the dollar struggled with disappointing jobs data weighing on the value. Although Friday's US non-farm payrolls report was far from being worrying, it came in below expectations and put pressure on the greenback. The report showed that US employers had increased hiring by 192,000 jobs in March, a slight decline from February's 197,000 jobs and far below economists' forecast of a 200,000 gain. Many saw the report as an important indication of the US Federal Reserve's plans for the future. The worse than expected figures have sparked speculation that the bank will hold off on an interest rate hike despite the Chair Janet Yellen's comments at last month's meeting that the rate could rise just six months after the bank finishes tapering . The euro gained momentum after ECB policymakers Ewald Nowotny and Yves Mersch dispelled the assumption that the bank was likely to ease further at May's policy meeting.

reported that on Monday, the two remarked that the bank was not planning to act in the near future. Mersch confirmed that the bank was working on plans for a large scale quantitative easing plan, but that it wouldn't be implemented for a long period of time. Meanwhile Nowotny claimed that the bank did not see an imminent threat of deflation. The comments gave markets a new perspective after the ECB's constant talk of further easing had many convinced that measures like a negative deposit rate or an asset buying scheme were likely in the future.