ECB's Knot: ECB has tools to counter euro appreciation if needed

Author: Justin Low | Category: Central Banks

Comments by ECB policymaker, Klaas Knot


  • ECB is monitoring strengthening in the euro
  • Euro strength would take prominence for ECB if it threatens inflation outlook
  • ECB taking a holistic view on financing conditions
  • ECB hasn't reached lower bound, still room for rate cuts
  • Too early to talk about exit from low rates
  • There should be room for optimism after the summer
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This is knocking the euro a little lower on the day, with EUR/USD falling to 1.2120 currently - creeping below its 200-hour moving average. There is also a slight dollar bid across the board as we see commodity currencies ease to session lows on the day as well.

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