National Australia Bank's take on the European Central Bank meeting overnight

In brief and specifically NAB's notes on the EUR:

The ECB added a new line on the exchange rate into the opening statement.

  • "...the recent volatility in the exchange rate represents a source of uncertainty which requires monitoring with regard to its possible implications for the medium-term outlook for price stability."
  • ... "downside risks primarily relating to global factors and developments in foreign exchange markets."

Draghi said last month concerns on the exchange rate were expressed by a few and these were now reiterated by the consensus

  • "there was by and large broad consensus on the fact ... that the recent volatility in the exchange rate represents a source of uncertainty which requires monitoring with regard to its possible implications for the medium-term outlook for price stability."

NAB on their EUR/USD target:

  • ... there is every indication that baring something unexpected the ECB will provide taper details next month (even if it leaves some uncertainties until December) and that's helping keep the EUR bid. Notwithstanding independent USD weakness we don't think markets will overdo the EUR's rise. Eventually the message that gains can and will impact the ECB will hit home. Our end September forecast of 1.19 remains and we don't see moves above 1.20 until 2018.

(bolding above is mine)