No 'Strong Vigilance' Pledged, Euro Plunges as Trichet Sounds Less Hawkish

The ECB left the main refinancing rate at 1.25%, after hiking it by +25 bps in April, at the May meeting. Policymakers omitted the reference 'strong vigilance' for a second month and viewed the monetary policy stance 'still accommodative'. The central bank pledged to 'monitor very closely' all developments with