ECB's de Guindos: Will be in a better position to reassess inflation outlook in December

• Expect a temporary rebound in inflation in the coming months
• It is likely that euro area economy will remain subdued in the near-term
• There are signs that labour market is beginning to weaken
• Will be in a better position to reassess inflation outlook and required action in December meeting
• Sees general disinflationary process continuing over the medium-term
• Will ensure policy remains sufficiently restrictive for as long as necessary

The euro is certainly benefiting from a bottoming out in sentiment as well as a retreat in Treasury yields over the past few weeks. But overall, the outlook for the region remains suspect at best as the economy continues to skirt on the fence of a recession while relying on hopeful optimism on inflation developments for now.

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