Lagarde to call for fiscal stimulus
Draghi's gift to Lagarde was to start a concerted effort calling for fiscal stimulus to lift the economy. This takes the pressure off ECB monetary policy and was a canny move from Draghi to his successor. You can only do what can be done. This is probably a line that Lagarde will carry on down and we may well see her express less of a reliance on rate cuts going forward. The present dollar weakness will only help EURUSD longs and we may well see a move up to 1.1200 on her speech if she does take this slant.
Potential for volatility here as the market looks for their first cue from the new ECB President.
