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Spokesman State ECB Does Not Target FX

ECB
  • Reuters runs comments from an ECB spokesperson, quoting them as stating that the ECB is always attentive to the impact of the exchange rate on inflation, in line with their mandate for price stability. The spokesperson adds that the ECB does not target a particular exchange rate.
  • On the topic of exchange rates - the 60 seconds following that US CPI release was the highest volume of trade seen across EUR/USD futures for months. Over 5,500 contracts changed hands at 1330BST/0830ET for a cash equivalent of ~$720mln.
  • The last time volume of this size was traded in a 60 second window was May 6th - a Friday morning in which the German 10y yield surged to its highest level in 8 years.

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