ECB Likes Seeing EUR/USD at 1.2870

The euro’s fall to six-week lows is likely to be welcomed by the European Central Bank (ECB), which has been trying to talk down the currency. Yet to really take the shine off the euro, policymakers need to show they are serious about pushing rates into negative territory, strategists said.
The euro fell to $1.2842 on Wednesday, its lowest level since April 4, after data showed the euro zone economy contracted for the sixth straight quarter at the start of the year, marking its longest recession on records that date back to 1995.
Still, the euro had clawed back about a third of a percent to $1.2878 by early Asian trade on Thursday and strategists say the single currency continues to be supported by strong inflows of foreign cash into peripheral euro zone government bond markets.