Investors betting on fresh easing measures from the European Central Bank were left empty-handed Thursday, propelling the euro to a one-week high against the dollar. And this must be the queerest interpretation:

“[Mr. Draghi] doesn’t show any urgency that the ECB needs to deal with the prevailing disinflation trend, as low inflation is expected to be a long-term phenomenon in the zone,” said James Kwok, head of currency management at Amundi, which oversees nearly €750 billion ($1.02 trillion) of assets. Data released Friday showed the annual inflation rate slipping to 0.7% last month, matching October’s recent low, which had prompted the ECB to cut its main lending rate in November to 0.25%.

So it seems that, in fact, the ECB is “targeting very low” inflation. Why don´t they come out and say so? Would Germany have anything to do with that decision? Update: One of the conclusions of this paper helps explain ECB behavior:

Consequently, if the Phillips curve is flatter, it is vital to respond rapidly and effectively to fluctuations in inflation caused by demand shocks, but also to respond in a prudent way to variations in inflation resulting from supply shocks.

Indicating that the ECB sees the fall in inflation as mostly due to supply shocks!!!