Goldman Sachs analysis of the ECB statement overnight , this from the bank's note in relation to the euro:
- The Governing Council signalled modest concern over the recent appreciation of the Euro as expected, noting in the Introductory Statement that it "will carefully assess incoming information, including developments in the exchange rate, with regard to its implications for the medium-term inflation outlook"
- But President Lagarde offered no details on potential policy implications, underscoring that the bar for policy rate cuts to stem currency strength is high in light of limited policy room.
Bolding is mine. There is nothing in this that has not been covered already, just a bit of a handy recap.
EUR popped but then succumbed to the equity selloff ... again. Maybe future posts can cite what is impacted in the currency in the following format:
- RO
RO- Risk on, EUR went up RORO - Risk off, EUR went down
Perhaps we can even refer to the single currency now as the eurororo
