- Financial stability a goal growing in importance
- Does not expect medium-term inflation rise above 2%
It’s that single mandate that has EUR shorts spooked. If the ECB “get’s a hair across” about inflation, we could see a repeat of the summer of 2008, when EUR/USD soared to 1.60 as the ECB focused on inflation and not on financial stability. (To its regret, as it turned out…) .
EUR/USD is at fresh session highs in the 1.3370s.
