ECB wrestles with 'danger zone' inflation

The European Central Bank's dilemma over barely rising prices seems likely to dominate a week starting with a euro zone inflation estimate and ending with U.S. jobs figures, the monetary policy driver on the other side of the Atlantic. After more than a month of East-West tensions centered on Russia's annexation of Crimea, U.S. President Barack Obama and Russia's Vladimir Putin finally spoke to each other on Friday, suggesting a possible diplomatic path out of crisis. With geopolitical issues calmer, even if not resolved, the financial markets are more likely to be guided more by global economic data and central bank deliberations. The ECB's Governing Council meets on Thursday and, although the vast majority of economists expect it to hold interest rates (ECB/INT), it is wrestling with a response to inflation persistently below its target of below but close to 2 percent.

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