ECB's Weidmann: inflation expected to gradually return to ECB goal

The European Central Bank policymaker and the head of Germany's central bank, Jens Weidmann, is out on the wires now and said that inflation will gradually return to levels compatible with the central bank's target.

   •  Markets expect end of QE by end of this year.
   •  Those expectations are plausible.
   •  End of QE would be first step towards normalization of monetary policy.
   •  Have to guide process by adequate communication without causing turmoil in markets.

The comments comes on the back of overnight report that the ECB will discuss a possible exit from its QE program at next week’s policy meeting and provided a minor boost to the shared currency, lifting the EUR/USD pair to 2-week highs, around mid-1.1700s.