ECB’s Constancio blames market expectations, hails ECB communication

While traders, investors and analysts are blaming European Central Bank's (ECB) communications over its intention, after the bank fell well short of market expectations, resulting in seventh biggest Euro move since its creation (3%), ECB vice-president Victor Constancio blamed market expectations.

According to Mr. Constancio talking to CNBC in Frankfurt, "We have to recognize that the markets got it wrong in forming their expectations. They did indeed have higher expectations than were there and that's why they reacted like they reacted but that was not our intention".

He pointed out that in October meeting, ECB talked about reassess the current measure and recalibrate it, if required and at no point hinting at something like QE2 or stimulus.

It is quite funny, given all those post formal communications that ECB would do whatever it must or in its power or even take measures to quickly bring back Euro Zone inflation close to ECB target of below but close to 2%.

We wonder, if Mr. Constancio was hinting that all the post communications don't mean much.

It looks like Bundesbank is the only one sticking to its communications.

Euro is currently trading at 1.088 against Dollar.