Further comments by Lagarde
- But we do not target it
- ECB will be 'extremely attentive' to exchange rate impact on prices
A bit of a warning in case the euro decides to take on a life of its own moving forward. That said, if there is a general dollar depreciation that feeds into euro strength, that will be something hard for them to really do anything about.
Sure, they can offer up some verbal intervention as per the above but for now, EUR/USD still has room to roam between 1.20 to 1.25 as far as I would say.
