If you read these comments, you will not have been surprised by the ECB waking from its slumber and talking down the euro when the currency popped 1.20 against the good old greenback yesterday eve. Overnight the central bank’s chief economist Lane gave the usual line that the exchange rate factors in their forecasts. But he was rather outspoken when he specifically mentioned EURUSD as a key determinant for their forecasts. For weeks – no, months – ECB-speakers made a pass at every opportunity to talk down the euro. Fortunately, Lane is the most important Council Member after Lagarde. So, it’s kind of important that he broke the ice.

 

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