Analysts at Danske say the euro has room to rise further:
- EUR/USD had corrected lower in the past week and a half, as the ECB’s Lane first commented that the FX rate was a factor for the ECB and on the back of a newspaper story arguing several Governing Council members were worried about the level of the euro.
- Lagarde sounded much less worried today, and effectively offered the EUR/USD a free pass higher.
- We see upside in EUR/USD especially longer out, and the currency could yet rise to levels that worry also the ECB more.
I posted earlier on Lane speaking later on Friday:
He may take his cue from the boss and not have much to say on the EUR level. Or he may be the designated jawboner at the ECB. he speaks from 1230GMT so I guess we soon find out.
Lagarde and Lane: