Lagarde selfie meme bubbles

With the US jobs report out of the way, the market will move onto the next big item on the agenda -- next Thursday's ECB decision.

Today, Ambrose Evans-Pritchard at the Telegraph writes that the central bank "in the worst internal disarray since the depths of the eurozone debt crisis."

He highlights recent comments from Schnabel at Jackson Hole, soaring inflation, clumsy efforts to close spreads and a source.

“It is a complete shambles. Christine Lagarde has lost control and is not showing any leadership,” said one source close to the Bundesbank.

The comments from Schnabel were something I highlighted ahead of Jackson Hole as a potential risk. She said that even a recession on its own wouldn't be enough to control inflation.

Evans-Pritchard highlighted commetns around breaking preceptions that the ECB would tolerate high prices. She said the likelihood and cost of current high inflation becoming entrenched was too high.

The person we haven't heard from is Lagarde. If she's pushed into the hawkish camp next week, it risks undermining eurozone growth further and sparking a blowout in periphery debt. If she strikes a dovish tone, it risks undermining the euro and ECB credibility, and also further alienating the hawks.

The euro fought off a test of support at 0.9900 yesterday but it will be hanging in the balance on Thursday.

EURUSD daily chart Sept 2