Lane is still on a crusade to jawbone the currency lower

  • The scale of upward revision in core inflation has been significantly muted by the appreciation of the euro exchange rate
  • It should be abundantly clear that there is no room for complacency on inflation
  • Headline inflation to remain negative for the rest of the year
  • Governing council stands ready to adjust all of its instruments accordingly

As much as Lane has been trying to put a lid on the currency's gains, yesterday's message from Lagarde was pretty clear i.e. they are not too concerned about the situation. That sort of overwhelms the remarks by Lane above - for now at least.

EUR/USD is little changed on Lane's latest rant above, trading at 1.1835 currently.