Here we go, right on cue
- but it would be short sighted to look at one-dimensional fx rise without looking at stimulating effecto f lower bond yields
- targeting a weaker euro could prompt counter-reaction
- euro target rate could conflict with price stability
- but fx rate is relevant for monetary policy as it can influence price developments
- Eurozone countries must make their economies competitive
- Euro’s gains partly due to capital inflows
EURUSD a little higher at 1.3719 on the view that a weaker euro could prompt adverse impact so they will be careful on driving it lower. But Weidmann has spoke last week about currency devaluation not being the answer so nothing here of real note.