ECB’s de Guindos: Possibility of undershooting 2% target is quite limited

Forex Short News
  • Growth in Q2, Q3 will be close to zero
  • EUR/USD at 1.17 is perfectly acceptable
  • Even 1.20 is something we can overlook, but anything more than that will be ‘complicated’
  • An additional rate cut is not going to help the economy to improve
  • We need certainty

The most interesting remark on there is the one on the exchange rate. That’s a soft cap it would seem of what the ECB might see as “acceptable”. You rarely see central bankers come out to talk about specific levels, so it’s definitely a standout.

This article was written by Justin Low at www.forexlive.com.