ECB Smacks Down Euro Again, Says EUR Strength Will Hurt Recovery In Crisis States
Just like yesterday, it was some anonymous Yen vigilante smacking down the USDJPY saying the initial G-7 statement was misinterpreted, so today it is the ECB's turn, which just smacked down the EUR royally, for the second time in a week following last week's Mario Draghi comments, when it said that:
- THE ECB IS WORRIED EURO STRENGTH WILL HURT RECOVERY IN CRISIS STATES
And just like yesterday the refutation came via shady pathways, i.e., an anonymous leak in D.C., so today, apparently the information comes from that venerable ECB conduit: Bild. What can one say - all is fair in central bank love and currency war.
EURUSD once again slides first, asks questions next:
Unless the ECB formally denies this Bild report, it is safe to say that for Draghi 1.3500 is the key resistance level, above which GETCO's FX algos will have to find other USD carry pairs to fund their market levitation.
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