Banque de France Governor Noyer says that recent strong currency fluctuations are a concern or the G7 and that they are worrying do to the Yuan link to the dollar. The EUR is only slightly above its long-term average on a trade weighted basis, he says. FX problems stem from weakness in the dollar and sterling, he says.
Noyer’s comments suggest that China may in fact be under the gun at next week’s G20 meeting to loosen up the renewed dollar-peg.
EUR/USD is back above 1.4800, helped by a recovery in EUR/GBP from 0.8930 session lows.
