Noyer comments are crossing on Reuters:

  • “It would be normal” to see the euro weaken given the eurozone’s lag behind the US recovery
  • France needs “strong structural reforms”
  • Estimates French growth at 0.9% in 2015
  • Eurozone situation has “nothing to do with deflation”
  • Eurozone situation isn’t normal but it’s not alarming.

Citi is also out with a note expecting the ECB to cut rates 15 bps in March.

EUR/USD is at the post-ECB lows at 1.3591. It’s not a bad time to think about a short, especially if you believe non-farm payrolls will be strong tomorrow.