ECB policy is more data-dependent - Nomura

Analysts at Nomura explained that they have previously argued that the transmission mechanism between positive economic data and EUR was broken, temporarily, ahead of political events. 

Key Quotes:

"The transmission mechanism is now being repaired, not only because of the lower political uncertainty.

ECB President Draghi’s comments today confirm that ECB policy is more data-dependent, as he implied the level of accommodation needs to be adjusted as the economy recovers."

"In addition, foreign equity flows into the euro area have recovered recently, with lower FX hedge ratios. This has changed the correlation between equity prices and EUR to neutral or positive. We think EUR should now benefit more fully from the recovery of the euro area economy, and further appreciation of EUR is likely."