ECB watching exchnage rate with great attention- BBH

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted that the euro has shed a big figure against the dollar this week after it failed to establish a foothold above the 1.3700.

Key Quotes:

"There were no substantial near-term policy developments from the ECB yesterday. The focus was on the announcements of lengthening the time between meetings to six weeks and the eventual release of minutes from the meetings. Last month Draghi was understood to say that interest rate policy had been exhausted, but today he seemed to backtrack a bit."

"He said that a technical adjustment could not be ruled out. It is not clear what this means, but it could be a cut in the corridor by bringing the marginal lending rate down."

"On the exchange rate, Draghi shed little fresh light. It is not a policy target, but it is an important input into inflation."

"He did seem a bit frustrated with the euro's resilience despite the rate cuts and other measures. He said he was watching the exchange rate with "great attention.""

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