Eurozone economy has lost some momentum - BBH

Analysts at BBH explain that survey data and some real sector data suggest the eurozone economy has lost some momentum, and last week February CPI was revised town. 

Key Quotes

“The flash March PMI for the eurozone will be reported.  It is expected to continue to soften, though it remains at elevated levels.  This coupled with the downward revision to the February CPI has seen market sentiment shift toward a slower change o the ECB’s guidance.  Draghi’s recent comment reiterated the importance of patience and perseverance.  He does not sound like a man on the verge of changing the current guidance.”

“ECB President Draghi has indicated that the most significant risks are exogenous to the eurozone.  This assessment has some merit given Brexit and potential US defection from the multilateral trading system it was instrumental in building.  However, it is incomplete, or does not seem to give sufficient due to internal risks, like an Italian crisis, and premature tightening of financial conditions, which would include a substantial (relative to ECB purchases) repayment of TLTRO funds beginning in Q2.”