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ECB's Lane & USD Bounce See Rate Back From Fresh Cycle Highs

EURO-DOLLAR

Tuesday's USD turnaround dragged the rate from fresh cycle highs of $1.2011 back down to the lower regions of the $1.1900 handle, with fresh pressure seen on the back of comments from ECB chief economist Lane, as he noted that the level of the cross does matter, even though monetary policy doesn't target the exchange rate. This built on the re-deployment of the "while any premature tightening of financial conditions could put the ongoing recovery at risk" passage in the accounts of the ECB's July meeting.

  • Rate last deals little changed at the ~$1.1915. Yesterday's high presents the initial resistance for the cross, with support located at the August 31 low of $1.1884.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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