- Strong euro may increase the risk of undershooting on inflation
- Closely watching exchange rate volatility
- Don’t see any inflationary effects from US tariffs
- ECB is in a good position on rates and inflation
- But must remain completely optional on rates
He’s not the first one to be touching on the euro currency in the past few weeks. That’s as good a signal as any that policymakers are definitely keeping a close eye on things. I mean, they seldom – if ever – comment on the currency levels so it is worth noting.
This article was written by Justin Low at www.forexlive.com.
